Does Medicare cancel COBRA?
Asked by: Santa Gibson | Last update: March 10, 2025Score: 4.2/5 (59 votes)
Can you have COBRA coverage and Medicare at the same time?
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.
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.
Does COBRA automatically cancel?
Your COBRA coverage will cancel automatically as of the end of the last coverage period for which timely premiums were paid and received. For example, a qualified beneficiary who has paid for COBRA through the end of November wishes to cancel her coverage as of December 1.
Can you be on 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.
Got COBRA? Here's How Medicare and COBRA Work When You're 65+
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.
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.
When can an employer terminate COBRA coverage?
Premiums are not paid in full on a timely basis; • The employer stops maintaining any group health plan; • A qualified beneficiary begins coverage under another group health plan; • A qualified beneficiary becomes entitled to Medicare benefits; or • A qualified beneficiary engages in fraud or other conduct that would ...
Is COBRA considered creditable coverage for Medicare?
COBRA is not normally considered to be creditable coverage for Medicare major medical benefits, so people who are enrolled in COBRA and do not enroll in Medicare Part B within 8 months of turning 65 face substantial financial penalties for the rest of their lives, even if they have months or years left on their COBRA ...
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.
Who pays first COBRA or Medicare?
Medicare pays first, and the group health plan pays second.
If you have employer or union coverage and get Medicare drug coverage, you may lose your employer or union health and drug coverage (for you and your dependents). If this happens, you may not be able to get your employer or union coverage back.
Can I defer Medicare if I have COBRA?
If you keep COBRA drug coverage and it is creditable, you may delay enrolling into Medicare Part D drug plan until your COBRA ends. You will not have to pay a Part D late enrollment penalty, as long as you enroll within 63 days of losing your drug coverage.
Is COBRA 18 months or 36 months?
In that case, COBRA lasts for eighteen months. If the qualifying event is the death of the covered employee, divorce or legal separation of the covered employee from the covered employee's spouse, or the covered employee becoming entitled to Medicare, COBRA for the spouse or dependent child lasts for 36 months.
Does COBRA coverage end at age 65?
If you get COBRA before Medicare
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.
Is Medicare cheaper than COBRA?
Your Medicare options might have lower premium costs for you than COBRA coverage. Keep in mind that, generally, you bear the entire premium cost of COBRA coverage and your employer is not obligated to pay the premium or a portion of it.
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 do COBRA and Medicare work together?
If you have Medicare Part A or Part B when you become eligible for COBRA, you must be allowed to enroll in COBRA. Medicare is your primary insurance, and COBRA is secondary. You should keep Medicare because it is responsible for paying the majority of your health care costs.
How long can I stay on COBRA?
While COBRA is temporary, in most circumstances, you can stay on COBRA for 18 to 36 months.
Is Medicare 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.
What are the rules for COBRA coverage?
- Your group health plan must be covered by COBRA.
- A qualifying event must occur.
- You must be a qualified beneficiary for that event.
Why is COBRA so expensive?
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.
Can you cancel a COBRA anytime?
Yes, you can cancel COBRA coverage at any time. However, be aware that cancellation does not trigger a special enrollment period for new health insurance.
Can Medicare cancel your coverage?
Non-payment of premiums: If a person does not pay their Medicare premiums, their coverage can be discontinued..
Is it better to be on Medicare or Medicaid?
While Medicare is the primary payer for medical needs, Medicaid can cover costs that Medicare coverage does not. When you visit a provider that takes both Medicare and Medicaid, Medicare pays first for the cost of your care. Medicaid pays second, covering copays and other costs not covered.