Yes, an employer may terminate its group health care plan at any time. If a plan no longer exists, all obligations under COBRA cease. The Employee Retirement Income Security Act (ERISA) does require employers to notify participants of the change in coverage within 60 days after the change is adopted. See the DOL web site for the applicable regulation. Additionally, any employees currently on COBRA when the plan is terminated also lose coverage. If a parent company or successor has a group health plan, COBRA obligations may shift to it. However, legal advice is recommended to review these business relationships and COBRA applicability to a specific organization.
Please Note: This material is provided as general information and is not a substitute for legal or other professional advice. Contact the Knowledge Center for more information.
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