Ask your employer if your prescription drug coverage under COBRA is considered “creditable.” Creditable coverage is drug coverage that is as good as or better than Medicare’s prescription drug coverage. If you keep COBRA drug coverage and it is creditable, you may delay enrolling into Medicare Part Ddrug plan until your COBRA ends.
Can I elect Cobra if I am Medicare eligible?
Jan 17, 2022 · Medicare and COBRA do not coordinate the same as employer coverage and Medicare. When you have COBRA, Medicare usually pays first, and COBRA pays second. However, your group insurance may have special rules determining the primary payer. Refer to your COBRA plan document for details regarding your plan.
Do you still need COBRA health coverage?
Jan 08, 2022 · COBRA is NOT creditable coverage. If youre Medicare-eligible and have COBRA, you should enroll in Part B. COBRA extends group benefits for a set period of time up to 18 months. Its rare for COBRA to be the best option for a Medicare-eligible person. You can usually get better coverage for less money than COBRA. Should I Enroll In Medicare
Is Cobra credible for Medicare?
Mar 25, 2019 · Your company’s prescription drug coverage is usually considered creditable coverage. But, be sure by asking that question of your company’s resource manager. I have the same advise if it is not creditable. Enroll in a prescription plan within eight months of leaving your employment. There will be no late enrolment penalty.
Does Medicare coordinate with Cobra coverage?
Creditable coverage is drug coverage that is as good as or better than Medicare’s prescription drug coverage. If you keep COBRA drug coverage and it is creditable, you may delay enrolling into Medicare Part D drug plan until your COBRA ends. You will not have to pay a Part D late enrollment penalty, as long as you enroll within 63 days of losing your drug coverage. If it is not …
Is COBRA considered creditable coverage for Medicare Part D?
Typically, COBRA is not creditable drug coverage for Part D. However, if your plan is an exception, you'll have a Special Enrollment Period to join a Part D plan without a penalty. Refer to your plan administrator to confirm the creditability of your current drug coverage.Jan 17, 2022
How do I know if I have creditable drug coverage?
The prescription drug coverage in a group health plan is considered creditable if its actuarial value equals or exceeds the actuarial value of standard Medicare Part D prescription drug coverage. If not, the coverage is deemed “non-creditable.”
Is COBRA considered creditable coverage for Medicare Part B?
You need to enroll in Medicare Part B once you're eligible. You may be able to delay enrolling in Medicare Part D prescription drug coverage without penalty if you can keep COBRA coverage and it includes creditable prescription drug coverage.
Is COBRA qualified coverage for 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.
Is COBRA considered 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 ...
What is a Notice of Creditable prescription drug coverage?
What is it? You'll get this notice each year if you have drug coverage from an employer/union or other group health plan. This notice will let you know whether or not your drug coverage is “creditable.”
Can you be on COBRA and Medicare at the same time?
If your Medicare benefits (Part A or Part B) become effective on or before the day you elect COBRA coverage, you can continue COBRA coverage as well as having Medicare. This is true even if your Part A benefits begin before you elect COBRA but you don't sign up for Part B until later.
Do I have to enroll in Medicare Part B if I have COBRA?
Avoid gaps in coverage & the Part B late enrollment penalty 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.
Is COBRA primary or secondary to Medicare?
When you're eligible for or entitled to Medicare due to ESRD, COBRA pays first, and Medicare pays second during a coordination period that lasts up to 30 months after you're first eligible for Medicare.
What is Cobra insurance?
COBRA (Continuation of Health Coverage). COBRA is designed to prolong your health insurance coverage if you’re no longer employed. It isn’t creditable coverage for original Medicare but may be creditable coverage for Part D.
What is creditable coverage?
The takeaway. Creditable coverage refers to health insurance that covers at least as much as — or more than — Medicare. If you have creditable coverage, you may choose to keep it instead of or in addition to Medicare.
What is a large employer for Medicare?
Medicare defines a “large employer” as any company that has 20 or more full-time employees. You may be covered through your own large employer or through your spouse’s large employer.
How much is the late enrollment fee for Medicare Part B?
For Part B, you’ll be required to pay a late enrollment fee of an extra 10 percent of your monthly premium amount for each 12-month period you didn’t sign up. This penalty lasts for as long as you have Medicare Part B coverage.
Can Medicare and VA work together?
Keep in mind that your VA coverage and your Medicare coverage can work together, if you choose to have both. The VA pays for services you receive at a VA facility, and Medicare pays for services you receive at a non-VA facility.
What happens if you lose your Medicare?
If you lose your current coverage, this triggers a special enrollment period during which you can sign up for Medicare without penalty. If you don’t have creditable insurance coverage and delay signing up for Medicare, late fees and penalties may apply.
What is VA health insurance?
Veterans Affairs (VA) health insurance is available for people who served in the active military, naval force, or air service and didn’t receive a dishonorable discharge. There are minimum duty requirements that apply. Family members may receive these benefits as well.
What is creditable coverage?
The most common type of creditable coverage is a large employer group plan. Meaning, a company that employs 20 or more people. When working for an employer, you likely receive health coverage through the company. If the company you work for has more than 20 employees, you have creditable coverage for Medicare.
What is small group insurance?
An employer with small group insurance is a company with less than 20 employees and may not be creditable coverage under Medicare. Further, a variety of government programs are also considered creditable coverage. Examples of other types of coverage are individual, group, and student health plans.
Who is Lindsay Malzone?
Lindsay Malzone is the Medicare expert for MedicareFAQ. She has been working in the Medicare industry since 2017. She is featured in many publications as well as writes regularly for other expert columns regarding Medicare.
Is FEHB considered creditable?
No, FEHB is NOT considered creditable coverage. However, some beneficiaries choose to still delay enrolling in Medicare when they have FEHB benefits. Some may find the FEHB benefits to be more cost-effective and vice versa.
How long do you have to file a Medicare claim?
Every employer who offers a plan covering prescription drugs must file their status (creditable or non-creditable) to the Centers for Medicare and Medicaid Services (CMS) each year no later than 60 days after the start of their plan year. For example, the majority of health plans renew on January 1 of each year, which means they will need to file by March 1. To notify CMS of the plan’s status, the plan sponsor/employer needs to complete this form by entering their contact information and the federal tax identification number and completing the certification. The process is quite simple.
When was Medicare Part D created?
As part of the Medicare Modernization Act of 2003, the Medicare Part D prescription drug program was created. The law requires that each employer offering prescription drug benefits as part of their employee benefit plan must notify any Medicare-eligible participant and the federal government if the coverage offered is at least as good as ...