>What is Chapter 11?
When a business is unable to service its debt or pay its creditors, the business or its creditors can file with a federal bankruptcy court for protection under Chapter 11.
Specifically, In Chapter 11 the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.
If you work for a business that has filed for Chapter 11 bankruptcy, you may be in a Special Enrollment Period.
How does Chapter 11 affect my health insurance?
A business that files Chapter 11 may or may not choose to continue the group health care plan as a function of the business need.
If your business continues their group health plan, you shouldn’t need to switch plans. In most cases, it is cheaper to stay on a group health plan than to get one individually.
If your business ends their group health coverage as a result of filing for Chapter 11 bankruptcy, then you’ve experienced a qualifying life event. This means that you are in a Special Enrollment Period, during which you can find a new individual or family health plan to replace the group coverage you had through your employer.
Keep in mind that you may need documentation to prove that you had this qualifying life event. In this situation, the documentation could be a letter or termination of group health coverage from either your employer or the carrier, or even the legal documentation of the Chapter 11 filing.
Dont’t forget: You only have 60 days from the date of the event (in this case, either the filing or the termination of the group health plan) to enroll in a qualified health plan.
Ready to get enrolled? You can get a quote here. But if you’d prefer to speak to a live person, call us at 1-877-279-7959 and we can help you enroll, too.
Still confused? Unsure if you’re in a Special Enrollment Period?
That’s ok! We are the experts and we can help you figure this out. If you have any questions, need help, or just prefer to speak with someone, feel free to call us at 877-279-7959.