COBRA and Medicare: Does COBRA Let You Delay Part B? | Penalty Risks

COBRA usually does not count as active employer coverage for delaying Medicare Part B after age 65. If you rely on COBRA instead of enrolling in Part B when employer coverage ends, you may face a late-enrollment penalty, a coverage gap, or both. Timing depends on your exact situation.

Key Rules

  • COBRA does NOT count as active employer coverage for Medicare delay purposes — it is continuation coverage, not employer-sponsored coverage
  • Electing COBRA does NOT extend or reset your 8-month Special Enrollment Period window
  • Missing the SEP while on COBRA forces you into the General Enrollment Period with delayed coverage and a permanent penalty
  • The Part B late-enrollment penalty is 10% per full 12-month period — and it is permanent