This is a quick overview for agents dealing with COBRA. To get more detailed information, call Arnie at 702-820-3133. 

What is COBRA? 

COBRA is an acronym that stands for:  

Consolidated Omnibus Budget Reconciliation Act 

COBRA lets employees who are leaving or were let go* from group/employer coverage to continue their insurance coverage. (*Except for gross misconduct.) 

Premiums 

COBRA premiums cannot exceed 102% of the premium for similarly situated individuals. 

Length of Coverage   

Coverage typically lasts 18 months for the primary insured. Coverage for the primary insured’s spouse and/or dependents can last up to 36 months depending on the situation. 

COBRA and Medicare 

Some plans allow for Medicare + COBRA. In this case, the client must pay for Medicare Part A (if applicable), Part B, and COBRA premiums. To find out details and what the benefit rules are, they will need to check their Summary Plan Description. 

Can a client with COBRA who is aging into Medicare delay their Medicare Part B?  

Medicare does not consider COBRA creditable coverage to delay enrollment in Medicare Part B.  If your client does not enroll in Medicare Part B when they are eligible, they may have to pay a penalty and wait to obtain Medicare Part B. 

Depending on their group insurance program, once they become eligible for Medicare their COBRA coverage may end. Starting from their last date of employer coverage, your client will have 8 months to enroll into Medicare Part B to avoid penalties or delays in coverage. 

Tip: Put important dates in your client’s CRM record and make sure they are in your calendar. 

If you found this helpful, let us know in the comments below. Also, let us know what you want to learn more about to grow your book of business. 

Join our team! If you are a Medicare agent and have questions about Sales or Medicare, call Arnie Fulmer at 702-820-3133. Arnie Fulmer is a Senior Market Advisor and the principal owner of Fulmer Insurance Group, a Medicare Brokerage Agency located in Las Vegas and licensed in multiple states. 

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