COBRA for Non US Citizens

[Guest Dazed_and_Confused]

Is an employer required to offer COBRA to Non US Citizens working for the employer outside of the USA? If yes, can you explain why. Thank you very much.

[GBurns]

Does the employee really work for a US company or is it for a subsidiary licensed/registered/domiciled in a foreign country? For example 3M is a US company but 3M Jamaica Ltd is not. Same for Xerox, IBM etc.

Is the employee benefit plan and/or the health plan for those outside the US, the same Plans as for those in the US ?

[Guest Dazed_and_Confused]

Yes, the employee does work for a US based company. The company is entirely based in the USA.

The employer has two health insurance plans - plan 1 for domestic (USA based) employees and plan 2 for out of the US employees. All out of the US employees are on health insurance plan 2 and some of the employees on plan 2 are US citizens and some are not US citizens. The current practice is to offer COBRA to all US citizens on plan 2 working out of the USA.

We are unsure of whether or not to offer COBRA to non-US citizens on plan 2 who work out of the USA. It looks like the health insurance carrier will allow non US citizens living and working out of the USA on plan 2 to enroll in COBRA. The employer would rather not enroll non-US citizens in COBRA unless it looks like COBRA law requires it.

[GBurns]

I do not see how a US employer with a US regulated health plan with employees on a US payroll, can expect not to be subject to US laws including COBRA.

I could find no disctinction or exemption based on citizenship or location.

In any case, I have to wonder why the employer would be reluctant, it seems petty and of little consequence.