My mom is thinking of retiring at the end of the year. She is 62 years old and would not be entitled to Medicare until she is 65. Her employer has 25 employees. We were recently told by a family member that you can pick up COBRA health insurance and keep it until you turn 65 and pick up Medicare as long as you are 62 when you retire. Is this correct? My mom would love to retire but does not want to worry about not have insurance coverage.
Retirees can use COBRA Insurance For 18 Months
Your mom would be eligible for COBRA continuation when she retires. Retirement is a qualifying event. When a qualified beneficiary retires from their job, the retired worker is entitled for up to 18 months health insurance continuation, which is the maximum amount of time an employee can keep COBRA continuation. If the employee retires and is entitled to Medicare on the same date, then their spouse or dependent would be eligible to continue on their group health plan for up to 36 months.
Losing Insurance When You Retire?
If you are fairly healthy and still want to remain insured, more affordable insurance alternatives to COBRA may be available based on where you live. Term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.