Who do I call for questions about Medicare and Cobra?
If you have questions about Medicare and COBRA, call the Benefits Coordination & Recovery Center (BCRC) at 1-855-798-2627 (TTY: 1-855-797-2627). If your group health plan coverage was from a private employer (not a government employer), contact the Department of Labor .
Can I enroll in Medicare if I’m on Cobra?
If you become eligible for Medicare while you’re on COBRA, your COBRA coverage will stop. You can enroll in Medicare as normal. You don’t need to take any additional steps.
Where can I find a Cobra open enrollment guide?
Benefit Resource (BRI) has a comprehensive guide to help you gear up for your enrollment period. WHAT IS COBRA OPEN ENROLLMENT? COBRA is very similar to the typical open enrollment period.
How can I get answers to my Medicare questions?
Also, an agent can answer all your Medicare questions, so you feel confident in your decision. Fill out an online rate form to see your rates now. Or, call us at the number above to get answers to your Medicare questions. We can even walk you through enrolling in a policy. Enter your zip code to pull plan options available in your area.
Should a Medicare eligible COBRA participant enroll in Medicare?
If you have Medicare Part A or Part B when you become eligible for COBRA, you must be allowed to enroll in COBRA. Medicare is your primary insurance, and COBRA is secondary. You should keep Medicare because it is responsible for paying the majority of your health care costs.
Can you be on Medicare and COBRA at the same time?
If you become eligible and enroll in Medicare before COBRA, the good news is that you can have both. Taking COBRA is optional, and depending on your situation, you may or may not want to. If you do decide to take COBRA, do not drop your Medicare plan.
Do I have to enroll in Medicare Part B if I have COBRA?
If you have COBRA first and then become eligible for Medicare, your COBRA coverage may end. Since you will not be fully covered with COBRA you should enroll in Medicare Part A and Part B when you are first eligible to avoid a late enrollment penalty.
What happens if I turn 65 while on COBRA?
The risks in electing COBRA at 65 or older include missing Medicare Part B enrollment deadlines and paying premium penalties, having a gap in medical coverage and being responsible for large medical bills you didn't anticipate.
How does Medicare work with COBRA?
In this situation, Medicare is always primary to COBRA coverage. If you become entitled to Medicare after you've signed up for COBRA, your COBRA benefits cease. (But if COBRA covers your spouse and/or dependent children, their coverage may be extended for up to 36 months because you qualified for Medicare.)
How does COBRA interact with Medicare?
If you have COBRA before signing up for Medicare, your COBRA will probably end once you sign up. You have 8 months to sign up for Part B without a penalty, whether or not you choose COBRA. If you miss this period, you'll have to wait until January 1 - March 31 to sign up, and your coverage will start July 1.
Is COBRA creditable for Medicare?
Does COBRA Count as Creditable Coverage for Medicare? To avoid penalties with Medicare, you must have creditable coverage. This means coverage that's at least equivalent to Medicare. COBRA does NOT meet these standards.
Is Medicare entitlement A COBRA qualifying event?
Medicare entitlement of the employee is listed as a COBRA qualifying event; however, it is rarely a qualifying event. In situations where it is a qualifying event, it is only a qualifying event for the spouse or children that are covered under the group health plan.
Is COBRA considered continuous coverage?
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
Can my spouse go on COBRA If I go on Medicare?
But if your spouse became eligible for Medicare and then left his or her employment (and thus lost access to employer-sponsored coverage) within 18 months of becoming eligible for Medicare, you can continue your spousal coverage with COBRA for up to 36 months from the date your spouse became eligible for COBRA.
Why is COBRA not creditable coverage?
COBRA is not normally considered to be creditable coverage for Medicare major medical benefits, so people who are enrolled in COBRA and do not enroll in Medicare Part B within 8 months of turning 65 face substantial financial penalties for the rest of their lives, even if they have months or years left on their COBRA ...
How do I update my Medicare Coordination of benefits?
Call the Benefits Coordination & Recovery Center (BCRC) at 1-855-798-2627. TTY users can call 1-855-797-2627. Contact your employer or union benefits administrator.
How much does Medicare Part B premium go up?
For Medicare Part B, for example, the monthly premium goes up 10 percent for every 12-month period enrollment was delayed. Enrollees have to pay this penalty for the rest of their lives. If your employees are trying to decide between COBRA and Medicare, make sure they understand that they must enroll in Medicare if they want to avoid expensive ...
What happens if you enroll in Cobra?
This means that if your employees enroll in COBRA instead of Medicare, once COBRA coverage ends, they will have to wait until the next annual enrollment period to enroll in Medicare, and they will have to pay late penalties. The late penalties are not minor, either. For Medicare Part B, for example, the monthly premium goes up 10 percent ...
What is the cobra law?
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, is a federal law that requires employers to offer health care continuation to covered employees, their spouses and their dependents after a qualifying event. Enrollees can be required to pay 102 percent of premium costs, which includes the full premium and a 2 percent administrative fee.
How to avoid late fees?
Some people can avoid the late fees by qualifying for a special enrollment period. For example, people who are covered by an eligible group health plan can keep their employer-based coverage instead of enrolling in Medicare. They will qualify for an eight-month special enrollment period after employment ends.
How to contact CMS about Medicare?
Your employees can contact the CMS Benefits Coordination & Recovery Center at 1-855-798-2627 with questions about Medicare and COBRA. As always, do your best!
Does Cobra end?
Their COBRA coverage may end at this time. If your employees have Medicare first and then become eligible for COBRA, they may decide to keep both coverage types. This can be expensive, since they will have to pay for both, but they may find it to be worthwhile. If someone is enrolled in both COBRA and Medicare, Medicare is the primary insurance.
Is Medicare the primary insurance?
If someone is enrolled in both COBRA and Medicare, Medicare is the primary insurance. In other words, Medicare pays first, and COBRA may pay some of the costs not covered by Medicare.
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 normal. You don’t need to take any additional steps. Just make sure you sign up during the initial enrollment window.
How much is Medicare Part B in 2021?
Medicare Part B is medical coverage, and most people pay the standard premium amount for it. In 2021, this amount is $148.50. So, for most people, Medicare will be less expensive unless their COBRA coverage has a premium that’s lower than $148.50.
How long can you keep Cobra insurance?
Under COBRA, you’re able to stay with your former employer’s health plan, even if you’re no longer employed. You can keep COBRA coverage for 18 or 36 months, depending on your situation.
How long do you have to take Cobra after leaving a job?
Once you leave your job, you have at least 60 days to decide whether to take COBRA coverage. If you’re not already enrolled in Medicare Part B, you’ll have 8 months after leaving your job to enroll. You can use this window of time to weigh your options.
When does Cobra 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.
How long can you keep your cobra?
COBRA allows you to keep your former employer’s health insurance plan for up to 36 months after you leave a job.
What are the two types of reimbursement for healthcare professinoal?
If you have more than one type of insurance coverage, the reimbursement to healthcare professinoal is divided into two types: primary and secondary. This is based on which insurance pays first and which pays second.
What is a Cobra notice?
A notice of COBRA rights generally includes the following information: A written explanation of the procedures for electing COBRA, The date by which the election must be made, How to notify the plan administrator of the election, The date COBRA coverage will begin, The maximum period of continuation coverage, The monthly premium amount,
How long does it take to get a Cobra notice?
Separate requirements apply to the employer and the group health plan administrator. An employer that is subject to COBRA requirements is required to notify its group health plan administrator within 30 days after an employee’s employment is terminated, or employment hours are reduced. Within 14 days of that notification, the plan administrator is required to notify the individual of his or her COBRA rights. If the employer also is the plan administrator and issues COBRA notices directly, the employer has the entire 44-day period in which to issue a COBRA election notice.
How long do you have to notify Cobra?
Qualified beneficiaries must be given an election period of at least 60 days during which each qualified beneficiary may choose whether to elect COBRA coverage.
What is the COBRA requirement?
Title XXII of the Public Health Service (PHS) Act, 42 U.S.C. §§ 300bb-1 through 300bb-8, applies COBRA requirements to group health plans that are sponsored by state or local government employers. It is sometimes referred to as “public sector” COBRA to distinguish it from the ERISA and Internal Revenue Code requirements ...
How long does an employer have to issue a Cobra election notice?
If the employer also is the plan administrator and issues COBRA notices directly, the employer has the entire 44-day period in which to issue a COBRA election notice.
How long is Cobra coverage?
In certain circumstances, if a disabled individual and non-disabled family members are qualified beneficiaries, they are eligible for up to an 11-month extension of COBRA continuation coverage, for a total of 29 months. The criteria for this 11-month disability extension is a complex area of COBRA law. We provide general information below, but if you have any questions regarding your disability and public sector COBRA, we encourage you to email us at [email protected].
What is a qualifying event?
Qualifying events are certain events that would cause an individual to lose health coverage under a group health plan. The type of qualifying event will determine who the qualified beneficiaries are and how long they will be entitled to COBRA coverage.
Is Medicare state or federal?
Medicare is a federal program. The Centers for Medicare & Medicaid services run the federal health program. CMS is one branch of Health and Human Services.
How old do you have to be to get Medicare?
Most people are eligible for Medicare at age 65. Those under 65 can qualify for Medicare when they collect Social Security Disability for at least 24 months.
How much does Medicare cost at age 65?
The cost of Medicare depends on many things. Those with a low income will likely pay less than the standard amount and may qualify for Medicare and Medicaid. Those with a higher income will likely pay more for Part B; this is called the Part B Income Related Monthly Adjustment Amount.
Do I need Medicare Part B if I have other insurance?
When you delay enrollment because you’re delaying retirement, you won’t need to rush to sign up for Part B. Although; you may choose to enroll in Part A, especially since, in many cases, it’s free.
What age to apply for Medicare?
For the most part, people sign up for Medicare at age 65. But, some may choose to delay enrollment due to delaying retirement. In contrast, others may enroll before age 65 if they’re on Social Security Disability for at least 24 months.
Do you have to sign up for Medicare at 65 if you are still working?
You should sign up for Medicare at age 65 if you’re working for a small employer (less than 20 employees). But, if you work for a larger employer, you could delay enrollment.
How long is an Open Enrollment Period for Medicare Supplement policies?
You can pre-enroll in Medigap up to 6 months before the Part B effective date with some companies. But, many companies only allow you to pre-enroll 3 months before Part B effective date. The Open Enrollment Period for Medigap lasts for 6 months and begins the day your Part B is effective.
What is the penalty for not submitting a Cobra plan?
This penalty is equal to 110% of the subsidy provided on the individual's behalf after they became eligible for the other coverage or Medicare.
How to report Medicare subsidy to IRS?
Anyone who suspects that someone may be receiving the subsidy after they become eligible for group coverage or Medicare may report this to the IRS by completing Form 3949-A PDF , available on this website. The completed form should be printed and mailed to:
Can you get a Cobra subsidy if you have Medicare?
If you become eligible for other group health coverage (such as coverage from a new job) or Medicare coverage, you're no longer eligible for the COBRA subsidy. You must notify the health plan that's been providing your COBRA coverage that you're no longer eligible for the subsidy. This notification must be made in writing.
Is premium subsidy included in income?
A4. The premium subsidy is not included in the individual’s income. However, there is a phase-out of eligibility for the subsidy, which will increase some high-income individuals’ tax liability if they receive the subsidy. The phase-out impacts individuals whose modified adjusted gross income exceeds $125,000, or $250,000 for those filing joint returns. Tax liability is increased, to achieve repayment of a portion of the subsidy, for those taxpayers whose modified adjusted gross income is between $125,000 and $145,000, or $250,000 and $290,000 for those filing joint returns. If a taxpayer’s modified adjusted gross income exceeds $145,000, or $290,000 for those filing joint returns, the full amount of the subsidy must be repaid as an additional tax. There is no additional tax for individuals with modified adjusted gross income less than these income levels. (02/26/09)
Can you still get Cobra if you have Medicare?
Once you become eligible for other group health coverage or Medicare, you're no longer eligible for the COBRA premium subsidy, regardless of whether you actually enroll in the other group health coverage or Medicare. Once eligibility for the subsidy ends, if you continue to receive COBRA coverage, you must pay the full COBRA premium without ...
WHAT IS COBRA OPEN ENROLLMENT?
COBRA is very similar to the typical open enrollment period. Qualified beneficiaries are entitled to the same rights as active employees during open enrollment. Meaning they have the right to change benefits and add/remove dependents during this period. Qualified beneficiaries also receive access to the same benefits, choices, and services that similarly situated employees have, including open enrollment.
WHO NEEDS TO BE OFFERED THIS OPEN ENROLLMENT?
Open enrollment must be offered to all active COBRA participants and any qualified beneficiaries. Qualified beneficiaries include individuals who are still eligible to elect COBRA coverage.
WHAT ARE THE RULES FOR QUALIFIED BENEFICIARIES WHO ARE ELIGIBLE TO ELECT COBRA?
COBRA is continuation coverage. The qualified beneficiaries must enroll in continuation coverage for the current plan year. Then, they are eligible to make benefits changes during this open enrollment. If the individual fails to enroll in continuation coverage of the existing benefits, they would not be eligible during open enrollment.
Can you use a Cobra administrator?
Alternatively, plan sponsors may use a COBRA administrator to provide these packets. These packets are modified for COBRA-qualified beneficiaries. Avoid a common pitfall and don’t assume your COBRA administrator automatically sends these on your behalf. Open enrollment packets are generally an opt-in service. You will likely be asked to provide updated plan and rate information to your COBRA administrator. If you are not sure, your packets for enrollment have probably not been sent. It is worth reaching out to your COBRA administrator.
Does Cobra require open enrollment?
COBRA participants must receive a packet, which contains all required open enrollment disclosures. Additionally, the packet must include any updates or changes to rate information. Plan sponsors may send these packets directly to COBRA participants.
Can you require active enrollment for Cobra?
COBRA participants have the same rights (and responsibilities) as similarly situated employees. If you require active enrollment by employees during open enrollment, you can require active enrollment by COBRA participants. If you have passive enrollment, COBRA participants can maintain their existing coverage and/or be enrolled in the default coverage option.
Do you need to update your COBRA records if you don't have Cobra?
Even if you don’t have COBRA-qualified beneficiaries, it is still important to update systems of record with new benefit information.
What is Cobra insurance?
COBRA is continuation coverage . This means you are “continuing’ the coverage you can prior to the qualifying event. However, if you elect COBRA, you will have the right to change your coverage during an annual open enrollment period.
How long do you have to enroll in Cobra?
After a qualifying event, you have a limited period of time in which to elect COBRA and make your initial payment in full. While you are entitled to 18 to 36 months of COBRA coverage, you must enroll in COBRA and make your initial payment within the required COBRA timelines.
Is Cobra a gap coverage?
In this case, COBRA can be the path of least resistance and presents an easy gap coverage option. Alternatively, you may anticipate being out of work for an extended period of time and won’t have access to a group coverage option.
Is Cobra a necessary evil?
COBRA is sometimes viewed as a necessary evil. People will sometimes say (or complain) about all the things they wish they understood before enrolling in COBRA. Today, we are going to give you a sneak peak into the 5 questions you should understand before you enroll in COBRA.
Is Cobra only for health insurance?
There is a common misconception that COBRA only applies to your health plan option. This is false. COBRA coverage is available for more than just medical insurance. Any employer-sponsored benefit is potentially eligible for COBRA coverage.