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How Does COBRA Work With Medicare Living In WNY?
By Andrew L Hibbard @WNYMrMedicare
Originally Posted: 15 MAY 2023
Updated & Revised:
First things first…if you can avoid having to buy costly COBRA insurance, go out of your way to do so.
Why?
Because while buying COBRA insurance allows you to keep the same coverage you had while working, the price you will pay will skyrocket since you will now have to pay both the Employer’s share and the Employee’s share of the cost.
The Background: COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act of 1985, is a federal law that requires companies with 20 or more employees to let retirees have the choice to continue their group health insurance coverage up to 18 months after they, or their spouse, leave their job and stop active employment.
Here's how it works…
If your Employer hasn’t disclosed how much they are actually paying on your behalf, it's generally 70 percent to 80 percent of the monthly premium price for current, active employees.
So, for example, if your payroll deduction for your Employer Group Health Plan (EGHP) is $100.00 per pay period (or, say, $200 month), that means your Employer is likely paying $700.00 - $800.00 on your behalf behind-the-scenes.
When you choose to enroll in COBRA, you would have to pay both the $200.00 you’re used to paying, PLUS the $700.00 - $800.00 your Employer was paying. Pricey!
The most common reason for COBRA is this…
If you retired before turning 65, and aren’t yet Medicare Eligible, COBRA may be your best, and only, option to bridge the gap until you can make your move to Medicare.
When you turn 65, your COBRA coverage with end immediately, no matter how many months of COBRA coverage you elected from your Employer (remember up to 18 months).
And, Medicare will NOT inform you to sign up and start your Medicare coverage when COBRA has ceased, which means it is critical and crucial you have your plan plotted so you know how to get where you need to go --- and when --- with Medicare.
Now, what if you willingly work past 65, and did not sign up for Medicare?
You can technically buy COBRA coverage if you retire after 65, as long as you also enroll in Medicare Part A and Medicare Part B.
You are required to sign up and start Medicare immediately after stopping active employment because COBRA is considered secondary coverage. Without Medicare as your primary payer, many medical claims may be denied and not paid leaving you responsible for paying the bulk of the bills.
Not a risk you want to take, right?
In this situation, while you may have the choice to buy COBRA coverage, in most cases, most of the time, if you have to sign up and start your Medicare Part A and Medicare Part B benefits (which means paying for them), it is likely more financially favorable to look at a private Medicare insurance plan (Medicare Advantage, Medicare Part C, Medicare Supplement, or Medigap) when comparing out-of-pocket costs and coverage against COBRA cost and coverage.
The Bottom Line: COBRA is not considered “credible coverage” under the IRS and CMS (Center For Medicare Services) rules and regulations.
Ok, there’s a lot to deal with, right? I get it.
And as an active adult in WNY, who’s always on the run, you need a smart solution to cut through all the clutter.
If you want some light shed on your situation, your hand held the whole way, and making your move to Medicare simpler, easier, seemingly stress-free and almost effortless, I can do just that. Here's how...
NEARING AGE 65 AND AREN'T SURE WHERE TO START?
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**If you are TURNING 65 IN 1-4 MONTHS, you are cutting it close to your Medicare late penalty period. If you have NOT yet filled out and filed your Medicare forms, you are behind and against the clock. It is URGENT we get together as soon as possible so I can do all I can, before it's too late, to help you avoid paying a costly late penalty for life. Click HERE now to immediately schedule an emergency Medicare SmartStart Strategy Session with me...if there are any still available.
HAVE MORE MEDICARE QUESTIONS?
Read the most common questions folks in WNY ask when they aren’t sure how to get started with Medicare. Click HERE to see the complete Medicare SmartStart Answers article archive.
ABOUT THE AUTHOR
Andrew L Hibbard is a prominent name when mentioning Medicare in WNY, but one you may have never heard of. Working behind-the-scenes, he is a best-selling author, expert advisor and successful agency owner. Focused on educating first, Andrew prides himself on being considered “the only advocate in WNY fighting for better and more reliable Medicare resources, free from insurance company conflict of interests.”
To take away the stress of trying to tackle Medicare alone and feeling forced to figure it all out by yourself --- Andrew created the WNY Medicare SmartStart Program; a free, step-by-step plan, that holds you by the hand to sign up and start Medicare smartly. (More than 850+ people have gone through the program and call it “the lazy way to get Medicare done for you without costing you a dime”).
**SPECIAL FREE GIFT** If you want to see how hundreds of WNY'ers each year are doing things different with Medicare, and getting it all done in record time, you can request a special "Medicare SmartStarter Info Kit” at no-cost to you, Andrew will give it to you as his free gift. It will prove, without a doubt, why his Medicare SmartStart Program is widely considered the most popular and preferred way to sign up and get started with Medicare in WNY, Guaranteed! Simply click HERE right now, and everything will be rushed to you right away. It's that easy!
You Can Feel Confident Knowing What To Do With Medicare.
I Can Take Away The Stress Of Trying To Tackle It On Your Own.
Figuring out all the fine print with Medicare doesn't need to feel stressful. You don't have to spend your scarce free time at home, alone, in isolation, relying on your own assumptions and hit-or-miss guesses, attempting to do-it-yourself.
Confidently knowing exactly what to do (and when) with Medicare is the key to avoiding future fines and fees and only my Medicare SmartStart Program will show you how.
If you don't have the time or the desire to deal with Medicare directly, and want a BETTER, SMARTER, time-saving solution to short-cut hours of your own trial and error so you know --- without question --- you aren't messing anything up making a mistake...
Let me put my proven Medicare SmartStart Program to work for you.
Click the link below to take the next step and schedule a complimentary Medicare SmartStart Strategy Session with me --- it's that easy!
You Can Feel Confident Knowing What To Do With Medicare.
I Can Take Away The Stress Of Trying To Tackle It On Your Own.
Figuring out all the fine print with Medicare doesn't need to feel stressful. You don't have to spend your scarce free time at home, alone, in isolation, relying on your own assumptions and hit-or-miss guesses, attempting to do-it-yourself.
Confidently knowing exactly what to do (and when) with Medicare is the key to avoiding future fines and fees and only my Medicare SmartStart Program will show you how.
If you don't have the time or the desire to deal with Medicare directly, and want a BETTER, SMARTER, time-saving solution to short-cut hours of your own trial and error so you know --- without question --- you aren't messing anything up making a mistake...
Let me put my proven Medicare SmartStart Program to work for you.
Click the link below to take the next step and schedule a complimentary Medicare SmartStart Strategy Session with me --- it's that easy!
Get Started For FREE!
Who Is Andrew Hibbard?
Since 2015, Andrew has helped over 850+ Western New Yorkers through his nationally recognized Medicare SmartStart Program, taking away all the stress from folks trying to tackle Medicare on their own. His impressive record of success has been gotten Andrew featured in Forever Young Magazine and the BEE Group Newspapers, exclusive interviews on WECK Radio's Senior Matter's Program, and author an #1 Amazon best-selling guidebook on the subject, "Starting Medicare Smartly," revealing how the rules specifically and significantly differ for NY residents versus other states.
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