COBRA is NOT creditable coverage for Medicare Part B

New participation requirements for "Owner Only” enrolling small group health insurance

March 9, 2018


COBRA is NOT creditable coverage for Medicare Part B, and this has been causing problems for many who are getting clobbered with higher costs when they decide to enroll in Medicare Part B at a later time.

Under current law, COBRA coverage does not count towards creditable prior coverage for Medicare Part B, which means that when your COBRA ends and you decide to sign up for Medicare Part B after the date you originally could have joined, you will face a 10% per year for life penalty on the cost of Part B.

Surprisingly, COBRA may be considered creditable coverage when it comes to Medicare Part D – the drug coverage portion of Medicare. Because of this inconsistency, there is a bill before Congress that is attempting to correct this problem. It is called H.R. 5104 and the legislation would allow seniors enrolled in COBRA coverage to transition to Medicare Part B without a penalty.

Please be aware of this issue if you are faced with this decision of taking COBRA coverage or enrolling in Medicare.

Visit our website for more information about Medicare supplements or other senior insurance.  If you want to discuss your options, please email or give us a call at (631) 207-1800 and we would be happy to help.