The COBRA law is flawed in that the former employee loses his/her COBRA benefits if the former employer goes out of business/declares bankruptcy or for any reason stops sponsoring the group health plan. The former employee loses COBRA benefits through no fault of his/hers even though he/she is paying the full premium that was previously paid by both the employee and employer. This is not a very common occurrence, but it does happen. It happened to me and has had terrible consequences as I am paying more premium, have to meet a new deductible/out-of pocket expenses when I had already met those on the former plan for this year. Also, I am being forced into an HMO in January due to the fact that no carriers are offering PPO plans in Texas as of January 1, 2016.
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