If you are on COBRA Insurance coverage and over 65 years old, Medicare is the Primary Insurance for you. This means that your Cobra insurance carrier is not required to pay the first portion of your claims that should be covered by Medicare. Thus, you could owe up to 80% of your costs for Medical Expenses...
This Cobra Trap issue is one of the top priorities we are working as part of the Medicare Advisory Board for National Association of Health Underwriters. We worked closely with Rep. Shrader (Oregon) to get a bill drafted last week, HR5104, which will start to fix the Cobra Trap problem. This bill does not fix the entire issue, but is a step in the right direction by eliminating penalties and delays for those who wait the full 18 months of Cobra coverage to sign-up for their Part B coverage.