Q: How Can COBRA “Bite” Those New To Medicare?

A:  COBRA may “bite” you if you do not enroll in Part B within eight months of leaving your active employment. Although COBRA covers the same benefits that your employee group health plan (EGHP) covered while you were still working, Medicare does not consider COBRA to be an EGHP based on current employment. The eight month special enrollment period allowing those with an EGHP to delay enrollment in Part B does not apply to COBRA.

What happens if you get this wrong and don’t sign up for Part B on time? If you are 12 or more months late signing up for Part B, you will pay a late enrollment penalty for the rest of your life.