Consolidated Omnibus Budget Reconciliation Act (COBRA)

Consolidated Omnibus Budget Reconciliation Act (COBRA)

COBRA coverage is a temporary option to continue Employer Group Health Plan (EGHP) coverage for individuals that lose their job or have their hours reduced.

If you have COBRA, then become eligible for Medicare, your COBRA coverage will end.

However, if you have Medicare already, then become eligible for COBRA, you may enroll. COBRA will pay as a secondary to Medicare.

COBRA has no underwriting or waiting periods. It can fill in many Original Medicare gaps, such as prescription drugs, and may also cover some family members.

The coverage, however, depends on your original employer group health plan. COBRA premiums can be expensive and you are limited in how long you can continue coverage.