Leaving Under-20 Employer Coverage? Get Part B
Move quickly. With fewer than 20 employees, Medicare is usually primary at 65, and coverage that is not based on active work may not protect you from gaps or penalties. Confirm your Part B window before the employer plan changes.
Frequently Asked Questions
- Does a small employer give me a Part B SEP when coverage ends?
- Not necessarily. The 8-month Part B SEP is reliably triggered by active employment with a large employer (20 or more employees). Small-employer coverage may not automatically grant a SEP. Confirm your specific situation with Social Security.
- Can I stay on small-employer COBRA instead of enrolling in Part B?
- This is risky. COBRA is not qualifying active-employer coverage for Part B timing purposes. If you are 65 and Medicare-eligible, relying on COBRA from a small employer instead of enrolling in Part B can lead to claim gaps, denials, and a permanent penalty.
- What if I did not know I needed Part B while at my small employer?
- Lack of awareness does not stop the penalty clock. If you were Medicare-eligible and not enrolled in Part B without a valid qualifying coverage basis, the penalty begins accumulating from your Initial Enrollment Period. Enroll as soon as possible.