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A Service of OnQue Technologies, Inc. |
| Must My Client Offer COBRA to an Illegal
Alien? |
April 29, 2006
By Scott Haines, President
OnQue Technologies, Inc.
Santa Rosa, CA |
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The
following is an excerpt from Questions and Answers from the COBRA Help Desk–Part
III.
Broker: I have a client who just discovered
that a recently terminated employee is an illegal alien. Is my client required
to offer him COBRA continuation coverage?
OnQue: Neither the
statute nor the regulations address this issue directly. However, the
regulations provide that continuation coverage may be terminated for any reason
the plan would terminate coverage for a similarly situated nonCOBRA enrollee. A
fraudulent act, such as submitting false information on an insurance
application, may be considered sufficient justification for terminating
coverage, provided the plan documents support that position. If that argument
holds up, then it seems reasonable to conclude that the individual has no COBRA
rights, because his participation in the plan was fraudulent in the first
place. However, your client should consult with an attorney before denying
continuation coverage to the former employee. |
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This information is provided by
OnQue Technologies, Inc. for educational purposes only and does not constitute
legal advice. If legal advice or other professional assistance is required, the
services of a competent professional should be sought.
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