Q.- We offer health coverage to people who work overseas. Do we have to offer them the right to continue their coverage under COBRA?
A.- Maybe not. Whether a plan is subject to COBRA (under ERISA or the Internal Revenue Code) depends on if the coverage being offered is part of a United States plan or is part of an overseas plan. It also depends upon to whom the coverage is offered. The Code excludes from the definition of COBRA qualified beneficiary employees who are non-resident aliens without a U.S. source income. ERISA does not apply to group health plans maintained outside of the U.S. primarily for non-resident aliens. Since there are so many issues to be considered, it would be best to consult legal counsel.