COBRA and Medicare

[Guest joeydell]

Is an employee who terminated coverage eligible for COBRA, if he is 69 years old and enrolled in Medicare Part A at the time of termination?

It is my assumption that if the member elects COBRA then becomes Medicare eligible, it is at that time the COBRA benefits ceases.

[oriecat]

Yes, he is entitled to COBRA for any coverage he is enrolled in on the day before the qualifying event date. It doesn't matter if he also has Medicare coverage. Only when someone enrolls in Medicare after electing COBRA can COBRA be terminated.

[Guest buchanank]

I will take this inquiry one step further. What if the employee at retirement was enrolled in an HMO or POS at time of employment but when he/she retires at age 65+? They cannot be on the HMO or POS plan at retirement because the plans do not allow members to be over 65. Do we have to offer the supplemental plans we have for our over 65 retirees at the full premium rate plus 2%?

Kristina

[Christine Roberts]

Kristina, I think you have an "alternative coverage" situation. You offer COBRA or the Medigap coverage to active employees who lose HMO or PPO eligibility at age 65. If they choose Medigap, its "alternative coverage" and if another qualifying event takes place (e.g., termination of coverage), then you offer COBRA a second time. I believe this is addressed in Paul Hamburger's COBRA Q&A column (see link below).

http://benefitslink.com/modperl/qa.cgi?db=...=qa_COBRA&id=15