How Does COBRA Work?
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to keep your employer-sponsored health insurance after you leave your job. This is particularly helpful if you’re between jobs or waiting to become eligible for Medicare. Here’s how COBRA coverage works:
- COBRA allows you to keep your group health plan coverage for up to 18 months.
- If you experience a qualifying event, like job loss, you can elect COBRA coverage.
- You have 60 days to choose COBRA after your qualifying event.
- COBRA rights extend your health insurance coverage, but you will pay the full premium.
How to Get COBRA
To get COBRA, you must follow specific steps. These steps ensure you do not miss out on this valuable health insurance coverage:
- First, you must experience a qualifying event like job loss or reduction in work hours.
- Your employer must notify you of your COBRA rights within 14 days of the qualifying event.
- You have 60 days to elect COBRA coverage.
- Once you elect COBRA, you can keep your group health plan coverage for up to 18 months.
How Do COBRA and Medicare Work Together?
Understanding how COBRA and Medicare work together is vital for maintaining your health insurance coverage without penalties:
- If you are entitled to Medicare before you elect COBRA, you can choose COBRA coverage.
- COBRA coverage will end when you become eligible for Medicare.
- If you become eligible for Medicare after you elect COBRA, your COBRA coverage may continue, but Medicare will be your primary insurance.
- Enrolling in Medicare Part B when you are eligible helps you avoid late enrollment penalties.
When to Enroll in Medicare
Knowing when to enroll in Medicare ensures you do not face gaps in your health insurance coverage or late enrollment penalties:
- You generally become eligible for Medicare at age 65.
- Sign up for Medicare Part A and Part B during your initial enrollment period, which starts three months before your 65th birthday and ends three months after.
- If you miss your initial enrollment period, you may qualify for a special enrollment period if you have group health plan coverage.
- Enrolling in Medicare Part D Prescription Drug Coverage is also important to avoid late enrollment penalties.
Why You Need to Sign Up for Medicare
Signing up for Medicare on time is crucial to maintaining continuous health insurance coverage and avoiding late enrollment penalties:
- Medicare Part A and Part B provide essential healthcare coverage once you become eligible.
- If you delay enrolling in Medicare, you may face late enrollment penalties.
- Medicare does not cover everything, so you might need additional prescription drug coverage.
- Failing to enroll in Medicare when you are eligible can lead to gaps in your insurance coverage.
Get Help with COBRA and Medicare
Navigating COBRA and Medicare can feel overwhelming. At BoomerBaby, we are here to help you understand your options and make the best choices for your healthcare needs. Whether you need assistance with COBRA coverage, enrolling in Medicare, or understanding your health insurance options, our team is ready to assist you.
Call BoomerBaby today at 1 (800) 903-8044 to speak with one of our knowledgeable representatives. We have locations in Mill Valley, California; Bend, Oregon; Santa Ana, California; Sun Valley, Idaho; and Boulder, Colorado. Let us help you navigate your COBRA and Medicare options with ease.