Can I defer Medicare if I have a COBRA?
Asked by: Kali Macejkovic | Last update: November 30, 2025Score: 4.3/5 (60 votes)
Can you delay Medicare with COBRA?
You may be able to delay enrolling in Medicare Part D prescription drug coverage without penalty if you can keep COBRA coverage and it includes creditable prescription drug coverage. You will have 63 days to enroll in Medicare Part D without penalty once you lose COBRA drug coverage.
What happens if you have COBRA when you enroll in Medicare?
If you have COBRA before signing up for Medicare, your COBRA will probably end once you sign up. You have up to 8 months after you stop working (or lose your health insurance, if that happens first) to sign up for Part B without a penalty, whether or not you choose COBRA.
How to delay Medicare without penalty?
If you are working past 65 and receiving healthcare coverage (along with at least 20 other plan members), you may choose to delay enrolling in Medicare with no penalties .
Is Medicare eligibility a COBRA qualifying event?
Although a loss of coverage occurs when employees voluntarily remove themselves from the health plans, the reason (attaining other coverage, including Medicare) is not considered a qualifying event. Therefore, employees are not offered COBRA coverage in this scenario.
Got COBRA? Here's How Medicare and COBRA Work When You're 65+
What is the 60 day loophole for cobras?
You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.
Is coming off COBRA a qualifying event?
Losing COBRA Benefits
Here's the good news: Rolling off of COBRA coverage is a qualifying event that opens a special enrollment period for you to purchase your own health coverage. And you'll have more options, flexibility and control of your health plan outside of COBRA with an individual health insurance plan.
Can you defer Medicare if you are still working?
You may defer Medicare Part B enrollment because you are still working. Contact the SSA at (800) 772-1213 to defer. This will ensure that you avoid a late enrollment penalty when you decide to retire and enroll in Medicare Part B upon retirement.
How long can I delay Medicare?
If you enroll in Medicare Part D within this 63-day period, you will not be required to pay a penalty. If you do not enroll in a Part D plan during the 63-day period, you can generally only do so during the Annual Election Period (AEP), which is from October 15 to December 7. Benefits begin the following January 1.
What is the 8 month rule for Medicare?
Once you stop working (or lose your health insurance, if that happens first) you have an 8-month Special Enrollment Period (SEP) when you can sign up for Medicare (or add Part B to existing Part A coverage).
Which is better Medicare or COBRA?
After Medicare pays, COBRA may cover some or all of what Medicare does not pay. Whether you should take COBRA depends on the type of coverage you want and can afford. Your COBRA coverage may include extra benefits that are not covered by Medicare, like coverage for routine dental care or eyeglasses.
How long can I stay on COBRA?
You can collect COBRA benefits for up to 18 months. This may be extended to 36 months under certain circumstances. If your employer has 20 or more employees, it must follow COBRA rules.
Can I have COBRA and Medicaid?
Can I choose option that is best for me? Yes, eligibility for COBRA does not affect your eligibility for Medicaid or vice versa.
Do I need Medicare if I have COBRA?
Warning: It's important that you enroll in Medicare if you get COBRA coverage. If you don't you may have to pay late enrollment premium penalties later and have a waiting period imposed before your Medicare benefits can begin.
Does COBRA terminate Medicare?
Your COBRA coverage may be terminated if: You become eligible for Medicare. You reach the maximum coverage limit. You do not pay your COBRA premiums on time.
What happens if you don't enroll in Medicare Part A at 65?
Part A late enrollment penalty
If you have to buy Part A, and you don't buy it when you're first eligible for Medicare, your monthly premium may go up 10%. You'll have to pay the penalty for twice the number of years you didn't sign up.
What is the penalty for deferring Medicare?
For example, if you delay your enrollment by two years, you'll be charged your penalty for four years. Medicare Part B penalty: Your penalty will be an extra 10% of your premium for each year you could've enrolled. If you missed your enrollment period by two years, you'll have to pay your penalty for two years.
Can I switch back to Medicare anytime?
If you are currently enrolled in a Medicare Advantage plan and would like to switch to traditional Medicare, or switch to another Medicare Advantage plan, you may do so during the Medicare Open Enrollment period, which runs from October 15 through December 7 each year, or during the second Open Enrollment Period just ...
What happens if I turn 65 while on COBRA?
If you become eligible for Medicare after you've signed up for COBRA, your COBRA benefits will end when you turn 65, no matter how many months of COBRA coverage you were offered.
Will I lose my Medicare if I get a job?
Medicare eligibility is based on age, certain disabilities and conditions such as End-Stage Renal Disease (ESRD), but it is not based on income. This means that no income threshold would create a scenario where a beneficiary would lose their Medicare benefits.
Does everyone have to pay $170 a month for Medicare?
Most people pay no premiums for Part A. For Medicare Part B in 2025, most beneficiaries will pay $185 per month. Certain factors may require you to pay more or less than the standard Medicare Part B premium in 2025.
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
How many months is COBRA eligible?
All qualified beneficiaries are generally eligible for continuation coverage for 36 months after the date the qualified beneficiary's benefits would otherwise have terminated.
Is Medicare a COBRA qualifying event?
The following are qualifying events: the death of the covered employee; a covered employee's termination of employment or reduction of the hours of employment; the covered employee becoming entitled to Medicare; divorce or legal separation from the covered employee; or a dependent child ceasing to be a dependent under ...