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Q: I am considering taking a severance package from my current employer. I am employed by a US company and assigned to Shanghai, China. My daughter and I are US citizens. My wife is a green card holder. If I take the severance, my wife and daughter will need to stay in Shanghai until my daughter graduates from high school in June 2008. I would be in the US working as a consultant and looking for a new permanent position. Will my wife and daughter be covered under COBRA while they are residing in Shanghai?
A: COBRA laws are subject to US employers. If they pay US taxes then they must comply with the laws and offer you COBRA coverage. As long as your wife and daughter were on the policy prior to the qualifying event they would be able to continue the coverage thru COBRA.
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