http://yourfinishrichplan.com/blog/2008/04/08/6-assistance-options-if-youre-unemployed-unemployment-benefits-assistance/ Where we put the emphasis on the personal in personal finance Thu, 17 Dec 2009 06:07:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://yourfinishrichplan.com/blog/2008/04/08/6-assistance-options-if-youre-unemployed-unemployment-benefits-assistance/comment-page-1/#comment-2094 JFS Tue, 20 Jan 2009 18:50:16 +0000 http://yourfinishrichplan.com/blog/?p=37#comment-2094 Regarding COBRA -- A first hand experience -- I was employed by a bank that chose to "Self-insure" for COBRA instead of going outside for coverage . . . After they laid me off (along with thousands of others), we got COBRA coverage for several months (much less than the 18 months mandated by Congress?)-- until the bank went under -- They were closed over a weekend by the FDIC and their assets sold to another institution. Guess what? We all got a letter saying "Effective immediately" our COBRA coverage was "terminated." They initally even stopped paying existing bills already submitted in-house and in processing. There is a major loop-hole here that needs to be addressed -- for a company to self-insure this and not be required to have a back-up plan in case of the co's demise is nothing shore of criminal. -- I'd see a class action suit here, but whose case are you gonna get on -- the FDIC's ? Regarding COBRA — A first hand experience —
I was employed by a bank that chose to “Self-insure” for COBRA instead of going outside for coverage . . .
After they laid me off (along with thousands of others), we got COBRA coverage for several months (much less than the 18 months mandated by Congress?)– until the bank went under —
They were closed over a weekend by the FDIC and their assets sold to another institution.
Guess what?
We all got a letter saying “Effective immediately” our COBRA coverage was “terminated.” They initally even stopped paying existing bills already submitted in-house and in processing.
There is a major loop-hole here that needs to be addressed — for a company to self-insure this and not be required to have a back-up plan in case of the co’s demise is nothing shore of criminal. —
I’d see a class action suit here, but whose case are you gonna get on — the FDIC’s ?

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