This relates to a personal relationship not through any business of mine. But it is interesting and since I never ran across it before and don't know the answer, I thought I'd post it here.
BACKGROUND
* Husband/Wife on Cobra effective 1/1/2012.
* Wife was the Employee
* No other coverage
* Event = Standard Termination of Employment
* Ages: 58 (h), 55 (w)
* Fully Insured group; 80 lives; Carrier BCBS-Illinois. Standard PPO product.
* Minor to moderate Pre-Ex
* They have had continuous group coverage through the Employer for 5+ years.
WHAT IS HAPPENING NOW
* Wife offered and likely to accept a 1-Year temporary, full-time position with start-up firm in Shanghai, China effective June 1, 2012.
* She is just the 2nd Ee to be hired after CEO
* Firm is a Joint-Venture 51% owned by Chinese interests; 49% owned by French multinational.
* Health benefits offered are through a Chinese carrier and look very modest; and pre-ex will be applied.
* After 1 year, they plan to return to U.S.
THE ISSUE
Can they stay on COBRA?
WHAT THEY HAVE DONE
1. Talked to BCBC-IL several times. No firm response.
2. Talked to Dept of Labor - Employee Benefit Security Administration a few times ... different responses each time
WHAT THEY ARE DOING NEXT
1. Consult an attorney.
=========================
WHAT I THINK
In my reading of COBRA and from what others have shared anecdotally, there appears to be nothing that would prevent them from keeping COBRA.
But obviously, it's a non-standard kind of issue and both I and others I've talked to could be wrong.
WHAT I AM ASKING OF FOLKS HERE
1. Generally speaking, opinions on whether COBRA be maintained if the Qualified Benificiary moves out of country?
2. Have they been barking up the wrong trees (BCBS-Customer Service and COBRA vendor and Dept of Labor-EBSA) in asking their questions?
I thought the situation was unique a bit interesting and one I do not know the answer to, so I thought I'd share it here.
I appreciate any and all comments or insights.
Thank you very much.
.
BACKGROUND
* Husband/Wife on Cobra effective 1/1/2012.
* Wife was the Employee
* No other coverage
* Event = Standard Termination of Employment
* Ages: 58 (h), 55 (w)
* Fully Insured group; 80 lives; Carrier BCBS-Illinois. Standard PPO product.
* Minor to moderate Pre-Ex
* They have had continuous group coverage through the Employer for 5+ years.
WHAT IS HAPPENING NOW
* Wife offered and likely to accept a 1-Year temporary, full-time position with start-up firm in Shanghai, China effective June 1, 2012.
* She is just the 2nd Ee to be hired after CEO
* Firm is a Joint-Venture 51% owned by Chinese interests; 49% owned by French multinational.
* Health benefits offered are through a Chinese carrier and look very modest; and pre-ex will be applied.
* After 1 year, they plan to return to U.S.
THE ISSUE
Can they stay on COBRA?
WHAT THEY HAVE DONE
1. Talked to BCBC-IL several times. No firm response.
2. Talked to Dept of Labor - Employee Benefit Security Administration a few times ... different responses each time
WHAT THEY ARE DOING NEXT
1. Consult an attorney.
=========================
WHAT I THINK
In my reading of COBRA and from what others have shared anecdotally, there appears to be nothing that would prevent them from keeping COBRA.
But obviously, it's a non-standard kind of issue and both I and others I've talked to could be wrong.
WHAT I AM ASKING OF FOLKS HERE
1. Generally speaking, opinions on whether COBRA be maintained if the Qualified Benificiary moves out of country?
2. Have they been barking up the wrong trees (BCBS-Customer Service and COBRA vendor and Dept of Labor-EBSA) in asking their questions?
I thought the situation was unique a bit interesting and one I do not know the answer to, so I thought I'd share it here.
I appreciate any and all comments or insights.
Thank you very much.
.
