Medicare is a federal health insurance plan offered to people over the age of 65 and to some people with disabilities. If you have Medicare and become employed, you may keep your Medicare and accept health insurance coverage through your employer. If you leave your job, you may be eligible to continue to participate in your employer's health care plan under federal COBRA laws, even with Medicare.
COBRA and Medicare
Step 1
Enroll in your employer's health insurance plan when you become employed. You may do so even if you receive Medicare.
Step 2
Advise your medical providers and Medicare that you have health care coverage under both plans. Having both could raise issues regarding which plan pays first and which is supplemental.
Step 3
Enroll in COBRA if you leave your job or your hours are reduced. You may elect to enroll so long as the change in your employment status is not due to your gross misconduct. Your employer is required to offer COBRA, also known as continuation coverage, if it has more than 20 employees. Some states have similar continuation coverage programs that require smaller employers to offer extended coverage.
Step 4
Consider the timeline for enrollment in COBRA. Your employer is required to notify its group health plan of the change in your employment status that makes you eligible. The plan has the next 14 days to advise you how to sign up for COBRA. You then have 60 days to decide whether to enroll. You should be aware that if you become eligible for Medicare while you are COBRA, your employer's health plan is permitted to end your coverage early.
Step 5
Decide whether it is worth the cost to enroll in COBRA. The plan may charge you the total costs paid by the employer and you, plus a 2 percent administrative fee. Due to the expense, you may decide to forgo enrollment in COBRA and to use Medicare as your sole form of health insurance.
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