Can You Have Both Cobra and Medicare?

Can you have COBRA and Medicare at the same time?

You can have COBRA and Medicare together if you were already enrolled in Medicare when you became eligible for COBRA.

For example, if you’re 67 years old and using a combination of Medicare coverage and health coverage from an employer, but then retire or scale down to part-time hours, you could be eligible for both COBRA and Medicare.

Is going on Medicare a COBRA qualifying event?

That said, if you become eligible for Medicare while you’re already enrolled in COBRA, your COBRA coverage will end. So, if you leave your job at age 64 and enroll in COBRA, your COBRA coverage will end when you turn 65 years old and enroll in Medicare.

However, if you are living with a disability, you may also qualify for a separate 11-month COBRA disability extension regardless of whether you qualify for Medicare based on this disability or based on age.

In addition, becoming eligible for Medicare qualifies your spouse and dependents for COBRA coverage for 36 months.

Does Medicare or COBRA pay first?

If you have more than one type of insurance coverage, the reimbursement to healthcare professionals is divided into two types: primary and secondary. This is based on which insurance pays first and which pays second.

If you have Medicare and COBRA benefits, Medicare is your primary payer. This means Medicare will pay for services first, and your COBRA plan will help pay for any remaining costs.

For example, when you use Medicare Part B, you generally pay a coinsurance of 20% of the Medicare-approved cost for the service. If your COBRA plan has a lower coinsurance or deductible, it can be used to pay for that remaining 20%.

This is only different if you’re eligible for Medicare based on living with end stage renal disease (ESRD), in which case COBRA pays first for the first 30 days you’re enrolled in Medicare.

COBRA plans may also cover services that Original Medicare (parts A and B) don’t, such as dental care, eye care, or medications. These additional expenses may also be covered by separate Medicare Advantage (Part C) or Medicare Part D plans.

How do I switch to Medicare if I’m on COBRA now?

If you become eligible for Medicare while you’re on COBRA, your COBRA coverage will stop. You can enroll in Medicare as usual. You don’t need to take any additional steps. Just make sure you sign up during the initial enrollment window.

The window lasts from 3 months before your 65th birthday to 3 months after. If you enroll after this point, you’ll be charged a late enrollment penalty.

If you’re using both Medicare and COBRA together and no longer want your COBRA coverage, you can cancel with the providing insurance company. An information packet from your former company’s human resources department should tell you how to do this. COBRA coverage is month-to-month, so you can cancel at any time.

What are the pros and cons of CORBA vs. Medicare?

Medicare coverage is provided in parts that cover different services.:

• Part A (hospital insurance)
• Part B (medical insurance
• Medicare Advantage (Part C)
• Part D

Parts A and B make up Original Medicare. A COBRA plan is likely to cover services that Original Medicare doesn’t. Depending on your need for those services, COBRA might save you money.

But, if you’re enrolled in Original Medicare, purchasing a supplemental Medigap plan can also help cover some of those costs and may be less expensive than COBRA. It’s important to read your plan details carefully and compare them with Medicare coverage.

COBRA vs. Medicare Advantage (Medicare Part C)

Medicare Advantage (Part C) plan benefits vary depending on the plan you choose and your location. Not all plans are available in all states. That said, many Part C plans offer benefits that Original Medicare doesn’t cover.

Your benefits compared to a COBRA plan will depend on the details of the COBRA plans and Advantage plans available to you.

COBRA vs. Medicare Part D

Your COBRA plan will likely include coverage for medications, but these may or may not be the medications you need. This is also true for Part D plans, whose covered drugs vary by insurer and location.

You’ll need to compare the medications that each plan covers to determine whether you have coverage for the drugs you need, and compare your copays for each drug.

Is COBRA more expensive than Medicare?

For most people, COBRA will be significantly more expensive than Medicare. This is because the average COBRA premium for an individual is around $600 a month, and much more expensive for a family. Usually, there is also a deductible you must meet before your coverage kicks in, which depends on your plan.

By contrast, most people don’t pay a premium for Part A but must meet a deductible of $1,676 a year. Meanwhile, for Medicare Part B, most people will pay a standard premium, which is $185 in 2025. There is also a deductible of $275.

This may be all you pay for coverage under Original Medicare besides applicable coinsurance, which can be significantly less than what you would pay under COBRA. If you’re also enrolled in Medigap, you may lower your Original Medicare costs further, but you also have to pay an additional premium.

But keep in mind also that people who earn above a certain income bracket need to pay a higher premium for Part B. For example, if your income as an individual is greater than $500,000 or $750,000 as a married couple, you’ll pay the maximum of $594 per month for Part B coverage. If you haven’t earned 30 work credits, you’ll pay another $505 for Part A coverage. This means your total costs for parts A and B would be $1,099 per month.

This extra surcharge also applies to Medicare Part D. However, the standard Part D premium, as well as the plan deductible, will depend on your plan. Similarly, your Part C premium and deductible will depend on your plan.

So, whether our ultimate expenses are higher or lower than COBRA depends on your total costs under each plan.

Takeaway

COBRA allows you to stay on the health plan offered by your employer even after you leave your job. However, you’ll be responsible for the entire premium amount, including the portion that your employer paid.

You can use COBRA and Medicare together to cover your health needs and the needs of your family. Depending on your plan, COBRA might cover services that Medicare doesn’t, or it might cover them at a lower cost. Medicare is always the primary payer if you’re using Medicare and COBRA together.

Ultimately, the choice between using COBRA, Medicare, or COBRA and Medicare together is up to you. Consider your budget, medical needs, and family situation when you compare your options and their costs.