Those previous answers are right–so if they really are ending her coverage completely, you should contact the insurance directly and ask about it.

Also, I’d clarify if they’re actually dropping her from the plan, or just no longer covering the nursing home stay? Just a thought….again, I’d call the insurance to verify what’s happening and why

There are really only two reasons your cobra gets cancelled, when you’re making your payments on time: 1. The insurance company goes bankrupt (into receivership) or 2. The prior employer cancels the group health insurance policy. That happens when the employer goes bankrupt, or the business closes.

Is her former employer going out of business and/or dropping their insurance plan?

If the employer’s group insurance plan no longer exists, then neither does COBRA.

COBRA = continuation coverage of the (former) employer’s group plan. If there is no plan, then there is nothing to continue.