Current laws allow people who are eligible for Medicare, but still work to keep the group health insurance plans from their employers. Once a person retires, they receive a special enrollment period to sign up for Medicare Part B for eight months without penalty.
Yet once people retire, they can choose to extend the coverage of their group through COBRA for a year. While COBRA, the enrollment period for Medicare Part B usually expires. So consumers have to wait until the open enrollment period from 1 January to 31 March each year. Though coverage does not begin until July - giving consumers a gap in coverage and with a penalty for late enrollment.
The president of the Medicare Rights Center, Joe Baker said, "There" is clear from the number and types of calls we receive on our hotline there is a lot of confusion on how Medicare works with COBRA. Not only are confused individuals, but employers as well, and the price of the confusion can be devastating for some. "
confusion lies in the fact that once a person eligible for the 'Medicare stops working, they have eight months to sign up for Medicare. on COBRA coverage, people do not work and are not eligible for this special enrollment period after the end of the COBRA coverage.
Some people choose to keep their group health insurance benefits through COBRA but it is important to remember that COBRA is only a temporary program. it is best to get a plan more permanent like Medicare to avoid fees and late registration gaps in coverage.
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