Can an employer terminate an individual's COBRA coverage when the individual becomes eligible for Medicare?
Q: Can an employer terminate an individual’s COBRA coverage when the individual becomes eligible for Medicare?
A: No. Simply becoming eligible for Medicare does not terminate COBRA coverage. Even enrolling in Medicare does not automatically end COBRA if the individual was already enrolled in Medicare before electing COBRA.
However, if an individual first becomes entitled to Medicare after electing COBRA, the employer’s group health plan may generally terminate that individual’s COBRA coverage early. Special rules and exceptions may apply.
Employers should verify the timing of Medicare entitlement and COBRA election before terminating coverage.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
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