Should I Take COBRA or Medicare When I Retire?
If you're eligible for Medicare, you should generally prioritize Medicare enrollment over COBRA. Medicare is primary when you have both, and COBRA pays secondary — often covering less than expected.
Frequently Asked Questions
- Is COBRA ever better than Medicare?
- COBRA may be useful if you have family members who aren't Medicare-eligible and need coverage, but for the Medicare-eligible person, Part B should typically be in place.
- Can I drop COBRA once I get Medicare?
- Yes. You can drop COBRA at any time. There's no obligation to keep it once you have Medicare coverage.
- What if my spouse is on my COBRA plan?
- Your spouse can stay on COBRA even if you switch to Medicare. But your SEP for Part B is based on when your employment ended, not when COBRA ends.