Retiring At Age 62, Can You Get COBRA Until Age 65?
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 may 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.
When Medicare Starts
Once you are entitled to Medicare you are no longer allowed to continue on the employer ‘s group health plan (COBRA). If you have a spouse or any dependents, they may take advantage of COBRA for 36 months, but you will not. You are not able to have both Medicare and COBRA.