Does COBRA count as employer coverage for Medicare Part B purposes?

No. Medicare requires coverage through an employer where you or your spouse is currently working (active employment). COBRA is post-employment continuation coverage, so it does not qualify. You cannot use COBRA to delay Part B enrollment without penalty.

What if I turned 65 while on COBRA and didn't sign up for Part B?

You likely missed your Initial Enrollment Period and will face a late enrollment penalty. You can enroll during the General Enrollment Period (January 1–March 31 each year), but coverage won't start until July 1. You'll also pay a permanent 10% premium surcharge for each full 12-month period you were eligible but not enrolled.

Can I use COBRA alongside Medicare?

Yes. Once you have Medicare, Medicare becomes your primary payer and COBRA becomes secondary. COBRA can still help cover things Medicare doesn't, like dental and vision. But you must enroll in Medicare — COBRA alone is not sufficient.

Is the Part B late enrollment penalty really permanent?

Yes. The 10% penalty per 12-month delay period is added to your Part B premium for as long as you have Medicare. It never goes away, and it compounds as base premiums rise each year.

I'm on COBRA and turning 65 soon — what should I do right now?

Enroll in Medicare Part A and Part B during your Initial Enrollment Period (the 7-month window around your 65th birthday). Ideally enroll in the 3 months before your birthday month so coverage starts on time. Don't assume COBRA protects you — it doesn't.

The COBRA Medicare Penalty Trap: Why COBRA Doesn't Protect Part B

If you're turning 65 while on COBRA continuation coverage, there's a critical mistake you need to avoid: assuming COBRA lets you delay Medicare Part B. It doesn't. This is one of the most common — and most expensive — Medicare enrollment errors people make.

The Short Answer

COBRA does NOT protect you from Medicare Part B late enrollment penalties.

Here's why:

To delay Part B without penalty, you need coverage through an employer where you or your spouse is currently working
COBRA is post-employment coverage — you're no longer actively employed
If you turn 65 on COBRA, you must enroll in Part B during your Initial Enrollment Period
Missing that window means permanent premium penalties and a coverage gap

Why COBRA Doesn't Count

Medicare has a specific rule about delaying Part B enrollment: you can only postpone without penalty if you have group health coverage through active employment — meaning you or your spouse is currently working for the employer providing the coverage.

COBRA fails this test for a simple reason: it's continuation coverage you receive after leaving a job. Even though it's technically the same employer plan, you're no longer actively employed there. Medicare doesn't care that the coverage is identical — it cares whether you're still working.

Active employer coverage = you or spouse currently working + covered by that employer's plan

COBRA = continuation of a former employer's plan after employment ended
Retiree coverage = also does NOT qualify (same reason — no active employment)

This distinction trips up thousands of people every year. Many assume that because they're still covered by a group health plan, they're protected. They're not. Learn how active employer coverage actually works with Medicare →

The Real Cost of Getting This Wrong

If you miss your Initial Enrollment Period because you thought COBRA had you covered, here's what happens:

The Late Enrollment Penalty

Medicare adds 10% to your Part B premium for each full 12-month period you were eligible but didn't enroll. This penalty is permanent — you pay it for the rest of your life.

Delay Period	Penalty	2026 Monthly Premium	Extra Cost Per Year
No delay	0%	$202.90	$0
1 year late	10%	$223.19	$243.48
18 months (typical COBRA)	10%	$223.19	$243.48
2 years late	20%	$243.48	$486.96
3 years late	30%	$263.77	$730.44
5 years late	50%	$304.35	$1,217.40

And remember: the penalty is calculated on the current base premium, which typically increases every year. A 10% penalty today costs more next year as the base premium rises.

The Coverage Gap

You can only enroll during the General Enrollment Period (January 1–March 31)
Coverage doesn't start until July 1 of that year
That's potentially months without Part B coverage

What to Do If You're Turning 65 on COBRA

Step 1

Know Your IEP

Your Initial Enrollment Period is the 7-month window around your 65th birthday. Enroll early for the fastest coverage start.

Check your deadlines →

Step 2

Enroll in Part A & B

Learn about enrollment →

Step 3

Understand the Overlap

Medicare becomes your primary payer. COBRA becomes secondary — useful for dental, vision, and gap coverage, but not sufficient alone.

See what Medicare covers →

Step 4

Choose Your Medicare Plan

Decide between Original Medicare + Medigap or Medicare Advantage based on your health needs and budget.

Compare plans in your area →

What If You're Already Past 65 and on COBRA?

If you already missed your IEP, don't panic — but act quickly:

General Enrollment Period: You can enroll January 1–March 31 each year. Coverage starts July 1.
You will pay the late penalty: 10% per 12-month delay period, permanently added to your premium.
Check for a Special Enrollment Period: If you had other qualifying coverage (through a spouse's active employer, for example), you may qualify for an SEP that avoids the penalty. COBRA itself doesn't qualify, but overlapping active employment coverage might.
Explore financial assistance: Programs like QMB or the Medicare Savings Programs may help cover premiums including penalties.

Read our full guide on missed enrollment options →

When COBRA IS Still Useful With Medicare

COBRA isn't worthless once you have Medicare — it just can't be your primary or only coverage. Here's when keeping COBRA alongside Medicare makes sense:

Dental and vision: Medicare doesn't cover routine dental or vision. If your COBRA plan does, it's worth keeping until it expires.
Lower out-of-pocket costs: COBRA as secondary coverage can pick up costs that Medicare doesn't fully cover.
Bridge coverage: If you're waiting for a Medigap policy to start, COBRA can fill the gap.
Prescription drugs: If your COBRA plan has good drug coverage, it may work alongside or instead of a standalone Part D plan — but compare carefully.

Key point: Once you enroll in Medicare, Medicare pays first and COBRA pays second. Your COBRA plan cannot refuse to pay secondary claims just because you have Medicare. However, COBRA typically lasts only 18 months (up to 36 months for certain qualifying events), so it's a temporary supplement at best.

2026 Part B Costs

The standard Part B premium for 2026 is $202.90/month. Higher earners pay more through the Income-Related Monthly Adjustment Amount (IRMAA):

Individual Income (2024 tax return)	Part B Premium
$106,000 or less	$202.90
$106,001–$133,000	$283.90
$133,001–$167,000	$405.10
$167,001–$200,000	$526.30
$200,001–$500,000	$647.60
Above $500,000	$768.80

The Part B annual deductible for 2026 is $283. Compare Medicare plans in your area to see total costs.