Wellness

[susielong]

Is COBRA considered creditable coverage by Medigap insurance companies? My husband is on COBRA through his last employer and I am on that coverage. I am Medicare eligible and signed up, but not sure if a Medigap company considers my coverage creditable coverage or not. Just need to know because of the pre-exiisting clause that is out there. TIA. Susie

[151949]

COBRA is much much more expensive than getting on medicare with a supplement or an advantage plan.Why would you want to stay on COBRA when you are eligible for medicare?

[Carmie]

You need to call the insurance company that the COBRA is with.  They will tell you and by law they will have to issue a letter of creditable coverage.  You might need a copy of this letter to pick up a supplemental plan and will 100% need it for RX coverage.  It probably  is.  Most are.

[Carmie]

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wrote:

COBRA is much much more expensive than getting on medicare with a supplement or an advantage plan.Why would you want to stay on COBRA when you are eligible for medicare?

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Not true at all.  Many people who are Medicare age have group Advantage coverage.  They can get COBRA. And there those who have a Supplement and Medicare on a group plan.

As you already know.  Advantage is less expensive than Medicare and a Supplement.

[OKPrincess]

When DH and I retired at 62 We were on COBRA for 18 months (that's all that's allowed by law). Yes it's expensive. We paid $1,100/month but with good benefits.  Since our 18 moths was over last September we had to get covered in the marketplace for far less but this fall we'll both be eligible for Medicare. I've never heard of medigap insurance companies but I thought once a person was Medicare age they had to go on it if no longer working. For 30 plus years we didn't have to worry so much about insurance but now it's truly an eye opener.

[highmaintenancejan]

Medicare and all the supplements and Rx supplements is really too much for seniors to have to deal with!!  Very confusing.  Much easier when you are working and you have insurance through your employer.  When you hit 65 it is a shame you have to be HIT with this confusion!!!

[Mmsfoxxie]

I agree @highmaintenancejan.  It's a ball of confusion and talk to the right people like the Department of Aging.  Go to workshops at your park district or library.

That helps but living it is the real teacher.  I found out myself that using Cobra is not always the least expensive way to keep insurance after retirement.  My medical insurance through Cobra was going to cost me a fortune, even with my Medicare so I didn't use it.  My dental insurance through Cobra was a big help, though.  I was able to get it at a group rate comparable to what I had on my job and keep my 20+ year tenure.  After my 18 months ended for Cobra, my dental plan treated me as a new client in that any procedure that required a waiting period would be treated as if I didn't have insurance at all, full price payment.  

Yes, I had a group plan with this company through my job for 20+ years, but I was new as an individual client.  If I had needed a root canal, for instance, I would have had to pay the full price.  It wouldn't have mattered that I paid premiums every month.  Not fair but that's just one of the things that you get used to.

[highmaintenancejan]

I totally agree, I think we paid $1000 a month or more for COBRA....the dental portion was reasonable and I think we were able to continue that another 18 months like you, also the vision care.  Used to be companies would continue to carry health care for retirees.  You paid rates almost as if you were working. NO MORE!!!  You used Medicare first I think and then your work insurance as your secondary.  It covered your drugs, etc.  Boy, those people have it made.  I think government employees have this.

[Carmie]

FYI: COBRA allows you to actually stay on your employers group insurance for the exact price your employer pays for coverage, plus they can charge a 2% administrative fee.

So, now you know how much your employer paid out of pocket for your benefits.  That can be eye opening.  Most of the time, group coverage is more comprehensive than what you can buy on the marketplace.

[Carmie]

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wrote:

I totally agree, I think we paid $1000 a month or more for COBRA....the dental portion was reasonable and I think we were able to continue that another 18 months like you, also the vision care.  Used to be companies would continue to carry health care for retirees.  You paid rates almost as if you were working. NO MORE!!!  You used Medicare first I think and then your work insurance as your secondary.  It covered your drugs, etc.  Boy, those people have it made.  I think government employees have this.

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Nope, if you are retired and have Medicare, you cannot use your company’s non Medicare insurance as secondary.  You can only do this if you or your spouse is working. And sometimes, even though you are 65 and still working, your Medicare is secondary to your employeers group insurance. Many of these people do not pick up Medicare Part B until they retire.

There are laws that govern this and the eligibility is determined by the size of the company and how many employees work there.

Many people, including a lot of government employees have their health insurance paid for them for life even when they have Medicare.  They never have to worry about paying an insurance bill.  Some offer Advantage Plans and some others a Supplement.

COBRA can include dental and vision, but employers are only obligated to offer core benefits and do not, by law have to offer dental and vision.

COBRA is also offered for 36 months for the employees dependents if they are cancelled off..perhaps through a divorce or a child too old to be on the contract.   If the employee leaves the job, COBRA is offered for 18 months.