COBRA until Medicare?

[Guest Sazyga]

I had heard that if I work for an employer for at least 5 years and retire anytime after age 60, I can keep COBRA until eligible for Medicare (age 65). True? If so, is it in writing anywhere so I can show my employer? Thanks.

[Mary C]

It depends what state you live in. What you describe sounds like a California state insurance law. However, after the initial 18 months of COBRA through the employer, your coverage continues with the carrier, not your employer's COBRA. The carrier can and usually does charge up to 213% of the group rate it charges your former employer for the coverage and it is identical to the benefits under the former employer's group contract. Coverage could end earlier than age 65 if you get other group coverage, do not pay a premium on time or the former employer cancels its contract with the carrier. Please keep in mind this is just a quick and dirty description of the California mandate. Other states may have different provisions. And if your former employer's plan is self-insured, it is not subject to these state laws. Check with your state insurance commissioner.