How to use Medicare and COBRA Together?
Do you have multiple insurance coverage? You can access two types of healthcare professional plans; primary and secondary. The type of plan you access depends on which insurance you cover first or second.
In most cases, Medicare is usually the primary payer for people who combine it with COBRA. That is, Medicare will cover the costs of service first and your COBRA plan will cover what is left.
If you have Medicare Part B [2], you will pay a coinsurance of 20 percent of the Medicare-approved cost for the service. COBRA plans with a low deductible [3] or coinsurance [4] can be used to pay for the remaining 20 percent.
You can also use CORBA plans to pay for healthcare services that cannot be covered by Medicare Parts A and B, such as medications, eye care, or dental care. The extra expenses are mostly covered by separate Medicare Part D [5] plans or Medicare Advantage (Part C) [6].
How do you change to Medicare if you’re enrolled in COBRA now?
You can become qualified for Medicare while enrolled in COBRA. When this happens, your coverage will terminate. Experts advise people to sign in to Medicare normally and not take any extra steps. It is important to enroll during the first enrollment period. The period usually lasts from three months before you turn 65 and three months after. You will receive a late enrollment penalty if you sign in after the first enrollment period.
You can terminate your COBRA coverage with the insurance organization if you do not want to use it anymore with your Medicare. You can find out how to go about this by checking the information center of your old company’s human resource department. Since the coverage exists for a month, you can terminate it anytime you want.