COBRA & Medicare
COBRA allows you to temporarily continue your employer-sponsored health coverage after leaving a job, but it does not count as creditable coverage for Medicare Part B. That means if you rely on COBRA past your Initial Enrollment Period (IEP) without signing up for Part B, you’ll face late-enrollment penalties and must wait for the General Enrollment Period to enroll. Understanding how COBRA and Medicare interact will help you avoid gaps in coverage and unexpected costs.
Key facts on how COBRA coverage interacts with Medicare eligibility.
- COBRA is not Creditable Coverage for Medicare
- Cannot remain on COBRA after age 65:
- Medicare becomes primary when you enroll
- COBRA premiums may still apply if you delay Medicare
- Timing:
- Enroll in Medicare Part B before your COBRA expires to avoid gaps
- Missing the IEP means waiting for GEP (Jan 1–Mar 31) with penalties
- Action steps:
- Review COBRA expiration date
- Contact Social Security to enroll in Medicare on time
Don’t let COBRA give you a false sense of security when it comes to Medicare. Because COBRA isn’t “creditable,” delaying Part B enrollment can lead to lifelong premium surcharges and coverage gaps. To protect your benefits and wallet, plan ahead for the end of your COBRA coverage and ensure you enroll in Medicare on time.
Need personalized guidance?
Contact Clear Benefits Advisors today to map out your enrollment timeline and avoid penalties.
