My good friend works in a small restaurant that has HMO coverage for the two owners and my friend. The business is struggling badly and the owners have not paid the premium for the past two months. My friend is on Florida's AIDS Insurance Continuation Program and they have paid his portion of the premium. He was just told their policy was cancelled because the owners have not paid their portion. They can get it reinstated if they make a payment soon, but the owners are saying they cannot afford to pay it.

Does the 63 day creditable coverage apply to my friend? I don't think he would be eligible for COBRA since it's just the three of them, but could he purchase an individual HMO without pre-existing based on the fact that he has had HMO coverage through this restaurant for several years? Please help as the 63 day window is rapidly closing if that is an option for him. Thank you for your help.

You are correct that COBRA would not apply. COBRA only applies to employers with 20 or more employees. As of what date was the coverage cancelled? The 63 days starts from the last date that your friend had coverage. The other option your friend should check into is whether or not there is a conversion policy available from the HMO.