Unfortunately under the current COBRA insurance laws, if at anytime your company stops providing health insurance to employees due to closing, bankruptcy, or other reasons, your COBRA insurance continuation will also end.  The law only extends COBRA benefits assuming that the company still is providing health insurance.  When this stops, like if a company closes, you can no longer keep that insurance plan with COBRA.  You will not, as you likely expected be covered for the entire 18 months.  You health insurance will end at the same time it does for all employees.

If you learn that your company is closing and therefore know that COBRA insurance will no longer be an option for you, it is important to begin to explore other health insurance options.  You will want to explore all different types of insurance options to meet your needs and your family’s needs including individual health insurance, family health insurance, catastrophic health insurance, short term health insurance, and government sponsored health insurance options.

One additional thing you may want to consider if you find out your company is closing, is if the current health insurance provider is going to offer any kind of health insurance continuation option.  Sometimes in these unfortunate situations, health insurance companies will offer a deal to continue your health insurance coverage with them at a discounted rate.  You would likely qualify for this as someone receiving COBRA insurance benefits with the insurer.