You’ve worked hard for years, and now you’re retiring or transitioning from your employer plan.

Your HR department offers you COBRA, and it sounds simple — just continue the same coverage for a few months until you “figure out Medicare.”

But here’s the truth that catches thousands of people off guard every year:

COBRA is not considered creditable coverage for Medicare Part B.

Let’s unpack why that matters and how to avoid costly mistakes.

The Common Assumption

Most people think:

“I can stay on COBRA for up to 18 months and then switch to Medicare when I’m ready.”

It feels logical. After all, COBRA is the same insurance plan you had while working — just with a different premium.

But Medicare doesn’t see it that way.

Once you (or your spouse) stop actively working, the employer plan is no longer treated as active employment coverage.

That means Medicare expects you to enroll in Part B as soon as your employment ends — not when COBRA ends.

What Happens If You Wait

If you delay enrolling in Part B while on COBRA:

• You’ll lose your Special Enrollment Period (SEP) tied to active employment.

• You may have to wait until the next General Enrollment Period (Jan–Mar) to apply.

• Your coverage could be delayed up to six months.

• And you’ll likely pay a lifetime penalty on your Part B premium.

In other words, you could be paying full COBRA premiums and be uninsured for major medical services once Medicare should have been primary.

The Coordination Problem

Here’s why it happens:

When you turn 65, Medicare becomes the primary payer for most people no longer actively working.

COBRA then pays secondary.

If you don’t have Medicare Part B, COBRA assumes Medicare would have paid first — and they won’t pay what Medicare would have covered.

That can leave you responsible for most of the bill.

Real-Life Example

A 66-year-old woman decided to keep COBRA for a year after retiring. She thought she’d save time by delaying Medicare paperwork.

Then she had surgery. The bill was over $30,000.

Because Medicare should have been primary — and she hadn’t enrolled — COBRA only covered a small portion. She was responsible for the rest.

Had she enrolled in Part B right away, Medicare would have paid the majority, and her COBRA would have picked up the remainder.

What You Should Do Instead

If you’re losing employer coverage and COBRA is an option, here’s the right sequence:

1. Enroll in Medicare Part A and Part B as soon as your active employment ends (or your spouse’s).

2. If you want temporary coverage for dental, vision, or dependents who aren’t eligible for Medicare, you can keep COBRA for them — just not as your main medical coverage.

3. Consider pairing Medicare with a Supplement or Advantage plan to maintain comprehensive coverage.

If you’re unsure about timing, always ask your broker before signing COBRA paperwork.

The Only Exception

If you’re under 65 and on COBRA due to disability, you may have different rules. But once you become eligible for Medicare, those same timelines kick in — Medicare becomes primary, and COBRA becomes secondary.

The Bottom Line

COBRA feels like a comfortable bridge, but it’s actually a trap for many retirees.

You could pay for a plan that won’t protect you when you need it most — and risk permanent penalties later.

At Mere, we specialize in helping people transition smoothly from employer coverage to Medicare — without losing a day of protection or paying unnecessary penalties.

📞 Call 904-654-5450 or visit www.merebenefits.com to make sure your Medicare timeline is right for you.

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