What happens if I take COBRA instead of Medicare?

Quick Answer

Taking COBRA instead of Medicare when you turn 65 is usually a costly mistake. COBRA is not considered creditable coverage for Medicare purposes, and you could face permanent late enrollment penalties.

Detailed Explanation

COBRA lets you keep your employer health insurance for a period after leaving a job, but it comes with a catch most people don't realize. Once you turn 65 and are eligible for Medicare, COBRA is no longer considered creditable coverage for Part B. That means the clock starts ticking on your Medicare enrollment window whether you take COBRA or not.If you skip Part B to keep COBRA and miss your Initial Enrollment Period, you'll likely face a late enrollment penalty when you do sign up. That penalty is 10 percent added to your Part B premium for every 12-month period you delayed. It stays with you for as long as you have Part B, which for most people means the rest of their life.The situation that trips people up most often involves people who retire at 65 and assume COBRA is a safe bridge. It can feel like real insurance coverage, because it is your same old plan. But Medicare treats it differently once you're eligible for Medicare.The rule that lets you delay Medicare without penalty, avoiding the late enrollment penalty, applies when you have coverage through active employment, meaning you or a spouse is still working and the insurance comes through that current job. COBRA is not active employment coverage.If you're in this situation, sign up for Medicare on time, and then evaluate whether COBRA makes sense as a secondary supplement for a short period while you sort out additional coverage.

How This Applies in Utah

What This Means For You

For you, this means if you're turning 65 and considering COBRA, talk to a Medicare counselor before your Initial Enrollment Period closes, because the penalty for getting this wrong doesn't go away.

Disclaimer

‍How Resting Sycamore Advisors Uses CMS Data

Our Commitment to Reliable Medicare Information

At Resting Sycamore Advisors, we work to provide accurate, current, and trustworthy information about Medicare Advantage, Medicare Part D, and Special Needs Plans.

To do that, we use data published by the Centers for Medicare & Medicaid Services (CMS), which is the official source for Medicare plan and enrollment information.

CMS Data Sources We Rely On

Our Medicare plan pages and comparison tools are powered by CMS datasets, including:

  • Medicare Advantage and Part D Landscape Files for annual plan availability and benefit details
  • Plan Benefits Package (PBP) Files for detailed benefit and coverage information
  • Part C and Part D Performance Data for quality ratings and plan performance measures
  • Monthly Enrollment Data for enrollment counts by contract, plan, state, and county

When possible, we link to the original CMS resources so you can review the source material directly.

How Often We Update Our Data

We follow the CMS release schedule and update our website as new data becomes available.

Annual Plan Year Updates (September)

We load new plan year Landscape and PBP files before the Medicare Annual Enrollment Period (October 15 through December 7). We also monitor CMS.gov for updates or revisions and refresh our content when needed.

Mid-Year Updates

We update enrollment and performance data as CMS publishes revised files, which are typically released monthly or quarterly.

Ongoing Maintenance

We routinely monitor CMS announcements for corrections, reissued files, or other changes and update our pages accordingly.

Each plan page includes a Last Accessed date so visitors can see when the source information was most recently reviewed.

How We Prepare CMS Data for Our Website

CMS data can be difficult to read in raw form. To make it easier to use, we format and organize the data for clarity.

This includes:

  • Standardizing plan identifiers such as contract ID, plan ID, and segment
  • Normalizing terminology so common Medicare terms are presented consistently
  • Organizing plan information by state, county, and ZIP code to match how people shop for coverage

All data values come from CMS. We do not change the underlying values beyond formatting, organization, and presentation.

Version Tracking and Transparency

We keep internal records of the CMS dataset versions used on our site.

Major Version History

  • Current Version: CY2025 Medicare Advantage and Part D Landscape Files (v1.0, published October 2025)
  • Prior Version: None. Resting Sycamore Advisors first began publishing structured Medicare plan information in March 2025

If CMS issues corrected or revised files, we update our website to reflect the latest available version.

Important Limitations

Please keep the following in mind:

  • CMS is the official source of truth. For enrollment and coverage decisions, always confirm details with Medicare.gov or 1-800-MEDICARE.
  • Data timing can vary. Enrollment and performance updates may appear on our website a few weeks after CMS publishes changes.
  • Plan details can change. Plan availability, costs, and benefits may change. Always verify current details directly with the plan provider.

Need Help From Official Medicare Resources?

For personalized Medicare assistance, please use these official resources:

  • Medicare.gov Help Center — https://www.medicare.gov
  • 1-800-MEDICARE (1-800-633-4227) TTY: 1-877-486-2048
  • State Health Insurance Assistance Program (SHIP) — free local counseling for Medicare beneficiariesIf you want, I can also give you a shorter legal-style version for a footer or /disclaimer page summary.