What to Know About Medicare and COBRA
Health insurance is overwhelming, especially when you're faced with picking a plan that covers your providers, medications, and medical needs. Additionally, you would like to keep your finances intact and not make a mistake.
If you are eligible for both Medicare and COBRA in New Jersey, it is very important to fully understand your options so you are not penalized or accidentally have a gap in health insurance. In order to make an informed decision you'll need to know what each program is and which plan fits your needs and eligibility status.
The Difference Between Medicare and COBRA in New Jersey
You've likely heard much about Medicare and COBRA insurance plans. But what exactly are these plans, and how do Medicare and COBRA differ from each other?
Medicare is healthcare insurance for individuals age 65 and older. You can also qualify for Medicare if you are on Social Security disability and under age 65. Medicare has multiple parts to it and monthly premiums associated with it.
Medicare is individual coverage so a spouse or dependents are not covered under Medicare unless they individually qualify.
COBRA allows anyone who lost their job to keep employer coverage for up to 18 months after being terminated. While working, the employer helps pay for the health insurance cost, however once eligible for COBRA the employer no longer has to contribute to the cost and COBRA is typically a much higher monthly premium.
Unlike Medicare, COBRA allows you to have your spouse and dependent children covered under the plan. If you become eligible for Medicare, but your spouse or dependents do not, they can continue on COBRA for up to 36 months (18 additional months after the initial 18 month period).
The new American Rescue Plan, which is the CoronaVirus relief bill helps pay for the cost of COBRA for certain New Jersey residents.
Do You Qualify for Medicare and COBRA?
If you are on COBRA and are eligible for Medicare then you need to know your options. Although COBRA can continue your employer coverage up to 18 months, Medicare does not consider COBRA to be “Credible” insurance. The enrollment windows for Medicare allow you up to 8 months to enroll in Medicare after losing employer coverage. If you do not enroll in Medicare during the 8 months after losing employer coverage, and continue on COBRA past the 8 months then you will have missed your eligibility period for Medicare. If this happens you can only apply for Medicare during the General Election Period (January - March) and Medicare will start on July 1st. Additionally, you will be penalized for not having credible insurance while you were on COBRA and eligible for Medicare. This penalty stays with you the rest of your life.
Therefore If your COBRA runs out in April and you did not apply for Medicare, you would have no insurance for 15 months, April until July of the next year! This can be devastating which is why you must plan ahead and not make assumptions.
Discover More About Medicare and COBRA in New Jersey
To find out more, contact New Jersey Medicare Brokers.
Featured Blogs
- New for 2025 - A Payment Plan for Prescription Drugs
- What Original Medicare Does Not Cover
- How to Avoid Medicare Scams
- Say Goodbye to the Medicare Part D Donut Hole in 2025!
- What are my dental insurance options while on Medicare?
- 2024 Changes to the NJ PAAD and Senior Gold programs: GSK and Eli Lily Participation
- Medicare and Social Security updates for 2024
- 2024 Medicare Enrollment Period
- Medicare Announces Price Negotiations on 10 Prescriptions
- New and Expanded state assistance programs for Seniors in New Jersey - NJ PAAD, Senior Gold, NJ Freeze & Stay NJ
- Supporting a loved one on Medicare in New Jersey
- Five reasons to work with a Medicare Insurance Broker in New Jersey
- NJ FamilyCare, PAAD, and Senior Gold Renewal- Post COVID-19 Emergency Declaration
- 6 Ways to Prepare for Medicare if You’re Working Past 65
- Medicare updates for 2023!
- Medicare Annual Election Period ends 12/7 and NJ State Assistance thresholds have updated for 2023!
- Medicare Advantage Versus Medicare Supplement – What’s the difference?
- Shingles vaccines are $0 in 2023 thanks to the Inflation Reduction Act!
- Medicare Premium is Going Down in 2023! Medicare Annual Enrollment Period is here!
- Protecting Yourself Against Medicare Scams
- Medicare changes when moving to or from New Jersey
- Medicare Premium Payment Options
- NJ PAAD and Senior Gold raised their qualifications by $10,000 in 2022!
- The Medicare Advertisements should stop after December 7th!
- Medicare Open Enrollment Period Continues Until December 7th
- 2022 Medicare Open Enrollment Period
- What will you be billed for a hospital stay with Medicare coverage?
- Understanding Medicare and IRMAA - Income Related Monthly Adjustment Amount
- Does Medicare Cover Gym Membership?
- Are you insured when traveling with Medicare?
- Medicare and Dental
- What to Know when you Qualify for Medicare due to Disability in New Jersey
- What to Know About Medicare and COBRA
- What to Know About Visiting a New Jersey Social Security / Medicare Office
- Options for New Jersey Prescription Help
- How Important is the Medicare Star Rating?
- Medicare Assignment
- Why Should You Engage with a Medicare Broker?
- President Biden’s Medicare Plan
- A Guide to Medicare HMO and PPO Options
- Medicare Part D Senior Savings Model: An Overview
- Do You Need Help with Medicare.gov?
- Medicare and Acupuncture
- Medicare vs Medicaid: What's the Difference?
- What to Do When Helping Parents with Medicare
- Understanding the Medicare Plans in NJ
- Medicare and Coronavirus
- Delaying Medicare Part B
- Finding Medicare Assistance
- How Do I Sign Up for Medicare Part B in New Jersey?
- Medicare Help—Making Medicare Easy
- PAAD: New Jersey's Prescription Assistance Program
- Medicare Insurance Agents and Brokers
- Finding Your NJ Medicare Broker
- Medicare Part D Eligibility
- Medicare Advantage (Part C)
- New Jersey's Dual-Eligible Special Needs Plans - The Facts
- Medicare Eligibilty Age
- Medicare through Social Security Disability in New Jersey - You Don't Just Age into the System
- New Jersey Senior Gold Assistance Program- What You Need to Know
- Assistance Programs in New Jersey for Medicare Eligibles
- Top 7 Medicare Mistakes
- Utilizing Your New Jersey Medicare Insurance Agent
- Medicare and High Income: Does Income Change the Cost of Medicare?
- Changing Medigap Plans
- Why Am I Getting A Bill For a Medicare Physical Exam
- How Medicare Brokers Can Help
- Republican Plans for Medicare in 2020
- What You Need to Know About Medicare in New Jersey
- NJ PAAD Application Help
- What Really Is Medicare for All?