Can An Employer Drop Health Insurance?

1. 

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   Pete Wittman

   President, The Wittman Group, Tennessee

   Any employer can choose to drop health insurance.  The question that usually pops up once the decision is made to drop coverage... "Can I go on COBRA?"  COBRA is continuation of coverage under the current plan.  Since the plan no longer exists, neither does the option for COBRA.  Most employers give employees ample notice that they are no longer going to continue to provide health insurance for the group.  Use the time to seek out and consult with an independent agent, who can help you.

   Answered on April 18, 2014

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2. 

   617 POINTS

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   Waltere Koti

   Principal Agent, First Insurance Agency Inc, United States

   The short answer is yes an employer can notify all its employee to seek individual coverage elsewhere because they are dropping coverage. Depending on the size of the company, a company with fewer than 50 employees is not even required to provide coverage under the affordable care act. Those with more than 50 employees can drop coverage and pay the penalty if the penalty is cheaper than buyer coverage.

   Answered on June 19, 2015

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