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COBRA and Cancelation of Group Insurance Policies

In the event that a company cancels their group insurance policy/policies, any COBRA enrollees on those plans will experience a qualifying life event (QLE). This is considered a "loss of coverage," as the policy and plans are no longer active or available to "continue" under COBRA.

COBRA enrollees can then use the loss of coverage QLE to enroll in coverage outside of Open Enrollment, such as coverage on the individual marketplace, coverage under a spouse, etc.

If the company cancels the policies, they need to inform any COBRA enrollees  about the change.

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