Does COBRA terminate Medicare?
Asked by: Makenna Kub I | Last update: June 22, 2025Score: 4.5/5 (66 votes)
Does being on COBRA affect Medicare?
If you have COBRA when you become Medicare-eligible, your COBRA coverage usually ends on the date you get Medicare. You should enroll in Part B immediately because you are not entitled to a Special Enrollment Period (SEP) when COBRA ends.
Can I have COBRA and Medicaid at the same time?
For many people, COBRA, the insurance you can buy into when you lose your job, is too expensive. And even if you decide to enroll in COBRA, it doesn't mean you can't apply for Medicaid. You can apply for and enroll in Medicaid any time.
What are the disadvantages of COBRA coverage?
- COBRA can be expensive, especially compared to the premiums you were paying before your qualifying event. ...
- COBRA does not apply to all employer-sponsored health plans—in particular, those organizations with fewer than 20 employees may have no requirements. ...
- Even if you get an extension, COBRA is only temporary.
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.
Got COBRA? Here's How Medicare and COBRA Work When You're 65+
Does COBRA let you keep your health insurance?
COBRA and Cal-COBRA
COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.
What is the largest disadvantage of COBRA?
COBRA coverage is not cheap. Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
What is not covered under COBRA?
COBRA also does not cover plans that provide only life insurance or disability benefits, as those benefits are not considered “medical care.”
How much does COBRA cost for one month?
Based on plan and state, COBRA costs range from about $400 to $700 per month and are based on the following: Your previous monthly insurance contribution. Your recent employer's monthly insurance contribution.
Will I lose my Medicaid if I get Medicare?
People who have both Medicare and full Medicaid coverage are “dually eligible.” Medicare pays first when you're a dual eligible and you get Medicare-covered services. Medicaid pays last, after Medicare and any other health insurance you have.
Is COBRA coverage worth it?
“If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.
Can I drop my employer health insurance and go on Medicare Part B?
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).
How does COBRA work with Medicaid?
COBRA Continuation Coverage – Cost Effectiveness
As a practical matter, the individual must elect the COBRA coverage in order to receive the benefit of the premium payment through Medicaid. Premium payments made by the state on the individual's behalf can only occur if such payments are likely to be cost effective.
What is the Medicare Part B premium for 2024?
The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $185.00 in 2025, an increase of $10.30 from $174.70 in 2024.
Are COBRA payments considered income?
If the employee receives the funds and can provide supporting documentation of the payment to the insurer, the funds are also nontaxable. If there is no verification that the employee used the funds to pay for the premiums, the amounts are included in wages and are taxable.
Can you have COBRA and Medicare?
If you sign up for COBRA and you are eligible for Medicare at the same time, your COBRA benefits are intended to be paid after Medicare pays, even if you haven't actually signed up for Medicare. And when you do sign up for Medicare later you could be subject to premium penalties for late enrollment.
What disqualifies you from COBRA?
Why would an employee not qualify to enroll in Cal-COBRA? The employee is enrolled in or eligible for Medicare. The employee does not enroll within 60 days of receiving the notice of eligibility from the employer. The employee is covered by another health plan.
Do I use my old insurance card for COBRA?
Will I be receiving a new insurance card or do I still use my old one? Since COBRA insurance is a continuation of your previous employer's group health policy, you will be able to use the same ID cards. The old card will be re-activated once your employer has received your COBRA payment.
Is COBRA cheaper than Obamacare?
COBRA costs an average of $599 per month. An Obamacare plan of similar quality costs $462 per month—but with the government subsidies available, the average cost of an Obamacare plan on HealthSherpa is less than $10 per month. But ultimately, it depends on your situation.
How long can I stay on COBRA?
While COBRA is temporary, in most circumstances, you can stay on COBRA for 18 to 36 months.
Does COBRA cover prescriptions?
What does COBRA continuation insurance cover? COBRA allows you to maintain coverage through the same plan you had while you were employed. Employer-sponsored coverage usually pays for costs such as hospitalizations, medical visits, prescription drugs, mental health care, rehabilitation services, and more.
What happens if I turn 65 while on COBRA?
If you get COBRA first and then become eligible for Medicare, when you turn 65, COBRA will cease providing primary insurance coverage to you. Medicare will become primary, and if you can keep COBRA, it will become your secondary insurer.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
Can I use COBRA for dental only?
For example, if you were covered under the medical and dental components on the day before your qualifying event, you may elect continuation coverage for medical only, dental only, or both.