COBRA responsibilities in these cases can vary. It may depend on a number of factors and the way the sale was structured.

The employer should consult a qualified attorney to address this issue.

Generally, the selling group is responsible for providing COBRA coverage as long as they maintain a group health plan. If the selling group no longer maintains any group health plan, the buying group would be responsible for providing COBRA coverage.

Also, the parties may agree to allocate COBRA responsibility to one party or the other.

For a detailed explanation of this subject, see page 1855-1858 of the 2001 Final COBRA Regulations.