If I Am Getting Medicare, Can I Get COBRA?

Keeping up with Medicare is complicated. When you start to add additional policies to the mix, it can get even more complicated. Knowing how your Consolidated Omnibus Budget Reconciliation Act (COBRA) policy and Medicare work together can prevent premium penalties, service denials and a few headaches.

What is COBRA?

• COBRA is a law that was designed to give those who recently lost health insurance due to a life interruption such as a divorce, job loss or death the opportunity to purchase a health insurance policy.

Can I Get COBRA?

• If you are already enrolled in Medicare and you become eligible for COBRA due to a qualifying reasons such as a job loss or death, you have the right to purchase a COBRA policy.

Who Pays First?

• Medicare is the primary insurance. COBRA works as a supplemental insurance, wrapping around Medicare by paying for things like coinsurance, co-payments and deductibles.

Part D

• While you can purchase the COBRA drug coverage, it is not considered a creditable substitute for Medicare Part D prescription drug coverage. If you drop your Part D and take COBRA, you may have to pay a premium penalty if you decide to take Part D in the future.

What If I Already Had COBRA?

• If you had COBRA before you became Medicare-eligible, your COBRA policy may drop you once you become Medicare-eligible. You can, however, keep your dependents and spouse on the plan so long as they are not Medicare-eligible.