Cobra and GI On a Med Sup

[melmadhav]

If someone already has their Medicare A&B but come off of Cobra can they use this as a GI for a Medicare Supplement? I'm second guessing myself because I know it effects their Medicare enrollment. I have an under 65 that needs a plan A in Texas. Next question is are any of the carriers paying on Plan A GI?

 

[WCMason]

In this situation the person is eligible for GI. The carrier will need proof the coverage was in place within the last 63 days. Don’t know the answer to the commission question as I’ve put every U65 on an MAPD. If you’re going for Plan A Medigap I assume you’ve ruled out the prospect enrolling in one of the fine MAPD plans in Texas.

 

[melmadhav]

Ok thank you for your help, this was my initial thought also but then I remembered Cobra can sometimes be funny because it is not considered creditable coverage for ACA and Medicare enrollments. Generally, I do a MAPD for U65 but this client has ESRD and a foundation will be paying for the Plan A premium and out of pocket costs associated with it. Honestly I don't think any of the carriers are paying GI in Texas anymore, not just Plan A but any plan. There were a couple that use to pay half but I believe those days are gone.

 

[somarco]

There is a Medicare - COBRA trap but I don't believe it applies in this situation since the person is under 65.


a look at the problems that can arise when COBRA is elected after age 65. Though a Medicare-eligible individual can have both COBRA and Medicare coverage, therein lies a trap.
The Medicare and COBRA Trap

 

[WCMason]

There is a Medicare - COBRA trap but I don't believe it applies in this situation since the person is under 65.


a look at the problems that can arise when COBRA is elected after age 65. Though a Medicare-eligible individual can have both COBRA and Medicare coverage, therein lies a trap.
The Medicare and COBRA Trap

There is really only one trap when it comes to COBRA and Medicare, and that is that COBRA is not considered creditable coverage to get a special election for Part B. But it does not create any problems in getting guaranteed issue for a supplement or a special election to get an MAPD or Part D plan.

I do occasionally run into someone who is unaware that if their COBRA started prior to their eligibility for Medicare, the COBRA automatically terminates the day they become eligible for Medicare. That actually protects them from mistakenly thinking they can postpone Medicare until COBRA runs out. It’s those who become eligible for COBRA after they go on Medicare, where COBRA is not automatically terminated, that run into problems because they may mistakenly think they can keep COBRA until it runs out, but if they keep it longer than eight months their SEP for Part B runs out.