1. What is COBRA coverage?
If you had coverage through an employer and left for some reason, including disability, you may be using coverage offered to you through COBRA. Most employers are required to offer their former employees COBRA if they choose to or need to leave because they quit or become unable to work due to disability. COBRA allows you to keep the coverage you had with your employer for a limited time, usually 18 months, until you find new healthcare coverage. Having COBRA ensures that you don’t have a lapse in coverage that might result in your paying a penalty when you do get healthcare coverage.
2. If I’m using coverage offered by my employer through COBRA now, should I join a Medicare plan?
If you are eligible for Medicare due to a disability but are using COBRA, you should seriously consider enrolling in Medicare and getting a Medicare Advantage plan as soon as you are entitled to do so. COBRA is often much more costly than Medicare, even though a Medicare Advantage plan can provide you with the same benefits. Also, if you do not enroll in Medicare Advantage when you are eligible to do so, you may need to pay a penalty later or you might have more limited options when your COBRA coverage ends.
3. When can I leave my COBRA plan and join a Medicare Advantage plan?
If you have COBRA coverage and want to enroll in a Medicare Advantage plan instead, you should do so during the time your former employer typically allows you to change your coverage. This is often referred to as “open season.”
4. What if my employer’s open season does not correspond with Medicare Advantage’s annual election period?
Medicare Advantage plans are required by CMS to grant you a special enrollment period if your COBRA coverage ends or if you choose to leave your employer’s COBRA coverage to enroll in a Medicare Advantage plan. If your COBRA coverage ends or you decide to leave your COBRA coverage, you have two months after that coverage ends to join a Medicare Advantage plan.