If you’re familiar with COBRA, you may know that it provides temporary continuation of group health coverage in the event of job loss or reduction in hours. However, what you may not know is that COBRA is not considered creditable coverage for Medicare purposes. This means that if you enroll in COBRA, you may still need to enroll in Medicare when you become eligible to avoid any late enrollment penalties. In this article, we will explore the rules and guidelines regarding COBRA and Medicare, and provide helpful resources for further information.

What is COBRA?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It is a federal law that provides employees and their families the option to continue their group health coverage for a limited time after certain qualifying events, such as job loss or reduction in hours. COBRA coverage is typically more expensive than the coverage an employee would receive while employed, as the employer is no longer contributing to the premium.

What is Medicare?

Medicare is a federal health insurance program for people aged 65 and over, as well as certain younger people with disabilities and those with end-stage renal disease. It is divided into four parts: Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage plans), and Part D (prescription drug coverage).

Why is COBRA not considered creditable coverage for Medicare purposes?

Creditable coverage is health insurance coverage that is expected to pay, on average, at least as much as Medicare’s standard prescription drug coverage. COBRA is not considered creditable coverage for Medicare purposes because it is a temporary continuation of group health coverage, and is often more expensive than other coverage options available to Medicare beneficiaries.

Do I need to enroll in Medicare if I have COBRA coverage?

Yes, you may need to enroll in Medicare when you become eligible to avoid any late enrollment penalties. Medicare enrollment is generally automatic for individuals turning 65 and receiving Social Security benefits, but if you are not receiving Social Security benefits or have other health insurance coverage, you may need to actively enroll in Medicare. It’s important to note that COBRA coverage does not count as creditable coverage for Medicare purposes, so you may face a penalty for late enrollment in Medicare if you rely solely on COBRA.

Helpful resources for understanding COBRA and Medicare:

• Medicare Rights Center’s Part B Enrollment Toolkit: Part 4 – Questions and Answers on COBRA and Medicare
• Medicare Interactive’s Get Answers: COBRA and Medicare Coordination page
• AARP’s Medicare Q&A Tool: COBRA and Medicare at the Same Time 
• Medicare Advocacy’s People with Medicare: Beware – COBRA is Not Coverage as a Current Employee 
• How Medicare Works with Other Insurance: Helpful info from Medicare.gov

In conclusion, it’s important to understand the rules and guidelines regarding COBRA and Medicare. COBRA provides temporary continuation of group health coverage, but it is not considered creditable coverage for Medicare purposes. If you enroll in COBRA, you may still need to enroll in Medicare when you become eligible to avoid any late enrollment penalties. If you have any questions about COBRA & Medicare, reach out to the New York Medicare Advisors at Plan Medicare for all of your Medicare needs.