COBRA for non-immigrant workers

[Guest jackk]

I am a Canadian citizen that has been working a Texas company for a 1.5 years and I am about to be laid off due to the lack of work. I am on a non-immigrant visa for Canadian professionals called TN (Trade NAFTA). Will I be eligible for a COBRA coverage if I stay in the US as a visitor? My visa is tied to my employment and I lose my TN visa the day I will be laid off.

Any help will be greatly appreciated.

[Guest Cathie]

To my knowledge there is no specification in the COBRA regs that would eliminate your right to COBRA. So long as you are covered on the plan at the time of termination and you are not fired for gross misconduct, COBRA applies.

[KIP KRAUS]

What alien status is “Visitor”? If your visa expires when you lose your job and you stay here, are you an illegal alien? If so, you’re not covered by COBRA in my opinion.

[Guest jackk]

As far as I know in many cases a visitor is a person that needs to have a visitor's visa. When my non-immigrant visa ends I can apply for a visitor's visa for up to 6 months. So visitor appears to be a valid status to me. But I can be wrong of course.

[KIP KRAUS]

I’m not sure about what the immigration laws allow for, but do you become covered by Canadian health care when your TN visa expires? If so, it occurs to me that even if you elected COBRA your employer could cancel it when you become covered under the Canadian system.

On the other hand, the only thing I can see in the COBRA regs. Is that it applies to employees who were covered prior to termination of employment. So I would guess you are eligible to take COBRA coverage.

[mroberts]

I believe you would be eligible as well. My question would be would you want to elect it if you are a visitor? I mean, are you going to stay in the country for six months? You can elect COBRA within 60 days from your date of termination. If you are only planning on staying in the country a couple more weeks or even less than two months, don't elect it unless something happens or comes up. If you are planning on going back to Canada relatively soon, you would be covered there.

[Guest jackk]

To KIP KRAUS:

I will not be automatically covered when my TN visa expires. First I have to "establish a residence in Canada" (i.e. move) and then after 3 months I will be eligable (in Ontario).

To mroberts:

My wife is due at the end of May and I am much more comfortable with the paid US health care system than its "free" Canadian counterpart.

But it sounds like there are sertain pre-defined intervals of time that I can elect COBRA coverage. What's it? 6, 12, and 18 months? Can I elect 11 months and 1.5 weeks?

[Guest Cathie]

You do not need to indicate the length of time that you want to keep the COBRA at the time of election. You sign up for it, keep your payments current, and cancel it when you no longer need it. The maximum length of time in your situation is 18 months. Your former employer can cancel your COBRA if you do not make timely payments, if the entire insurance plan is cancelled for some reason (such as the company closing down), or at the end of 18 months. Otherwise, you let them know when you no longer need it.

Your window of time to make the election is 60 days.

Before you commit yourself to COBRA, be certain that the insurance plan will cover you outside the country. Most of them do but it's wise to be sure. You will almost certainly have to make the payments to the doctors, hospitals etc. yourself and then be reimbursed by the insurance carrier.