Are you nearing 65 and still covered by COBRA? If so, you’re likely wondering how to transition from COBRA to Medicare without risking gaps in coverage or surprise penalties. It’s a common concern—getting the timing wrong could be costly. Whether you’re retiring, losing employer coverage, or currently on COBRA after a job change, this blog explains exactly what you need to do to make a smooth switch to Medicare.
Skyline Benefit, a trusted Medicare insurance broker in California, simplifies the COBRA-to-Medicare process by helping individuals enroll at the right time, avoid late penalties, and choose the right Medicare plan for their needs.
What Is COBRA Coverage and Who Is Eligible?
COBRA is a temporary continuation of employer-sponsored health insurance after events like job loss, reduction in hours, or retirement. It allows you to keep your group health plan for up to 18 or 36 months, depending on your qualifying event.
However, COBRA is not a replacement for Medicare, and relying on it too long could lead to late enrollment penalties.
When Do You Need to Switch from COBRA to Medicare?
If you’re turning 65 or already eligible for Medicare, the clock starts ticking. You typically have a 7-month Initial Enrollment Period (IEP) around your 65th birthday.
You may face lifetime penalties if you delay enrolling in Medicare Part B because you’re still on COBRA (not active employer coverage). COBRA does not count as creditable coverage for delaying Medicare enrollment.
Can You Have Both COBRA and Medicare?
Yes, but Medicare becomes your primary coverage and COBRA becomes secondary. This means:
- You must enroll in Medicare when eligible (especially Part A and Part B)
- COBRA will only pay after Medicare
- Not enrolling in Medicare could mean COBRA won’t pay your bills at all
You’ll avoid issues by enrolling in Medicare when you first become eligible and only using COBRA for services not covered by Medicare.
How Do You Transition from COBRA to Medicare?
Here’s a clear step-by-step process:
- Know your Medicare eligibility date – Usually, the month you turn 65.
- Sign up for Medicare during your Initial Enrollment Period – Don’t wait for COBRA to end.
- Apply for Medicare Part A (usually free) and Part B (monthly premium).
- Consider a Medicare Supplement or Medicare Advantage plan for additional coverage.
- Review your COBRA benefits – Some may offer dental/vision benefits that Original Medicare does not cover.
- Drop COBRA once Medicare starts – It’s typically not cost-effective to keep both.
What Happens If You Miss the Medicare Enrollment Window?
If you miss your Initial Enrollment Period, you’ll need to wait for the General Enrollment Period (Jan 1 – Mar 31), and coverage won’t begin until July. Worse, you may face a 10% Part B penalty for every year you delay.
You can avoid this by enrolling in Medicare as soon as you’re eligible, even if COBRA coverage is still available.
What If You’re Under 65 and On COBRA?
If you’re under 65 and on COBRA due to disability, you’ll qualify for Medicare after receiving 24 months of Social Security Disability benefits. Your COBRA will likely end once Medicare begins, so prepare early to avoid gaps in coverage.
How Skyline Benefit Can Help
Skyline Benefit offers expert Medicare guidance to help you avoid late penalties, coverage gaps, and confusion. We walk you through enrollment timing, plan comparisons, and benefit coordination so your transition from COBRA to Medicare is seamless.
No matter your situation, understanding how to transition from COBRA to Medicare is critical to avoiding costly mistakes.
Need help transitioning from COBRA to Medicare in 2025?
Skyline Benefit is an independent health insurance broker in Fullerton, CA that offers affordable and flexible Medicare options. We specialize in Medicare transitions and can guide you step-by-step through the process, including your Part B enrollment and supplemental plan options.
Schedule a consultation today. Call us at: (714) 888-5112