If you’re approaching age 65 or recently retired in South Florida, you’ve probably heard of COBRA — the program that lets you keep your employer-sponsored health insurance for a limited time after you leave your job. While it might seem like a smart way to stay covered, many people mistakenly assume COBRA can delay the need to sign up for Medicare — particularly Medicare Part B.
Unfortunately, that’s not how it works — and the misunderstanding can cost you big.
What Is Medicare Part B?
Medicare Part B is one half of Original Medicare. It covers your outpatient services, including:
- Doctor visits
- Lab work
- X-rays and diagnostic testing
- Outpatient surgeries
- Preventive care
- Durable medical equipment
Enrollment in Part B is time-sensitive. If you don’t sign up when you’re first eligible — and you don’t have what’s called creditable coverage — you could face delays in coverage and permanent penalties.
What Does “Creditable Coverage” Mean?
When it comes to Medicare, “creditable coverage” means insurance that is at least as good as what Medicare offers.
For Medicare Part B, the only type of coverage considered creditable is coverage from active employment — either your own or your spouse’s. This means:
- You are still working and have employer group health insurance
- Your spouse is still working and you’re covered under their employer plan
Once you’re no longer actively working, COBRA no longer counts — even if it’s the same insurance plan you had while employed.
Why COBRA Isn’t Considered Creditable Coverage for Part B
COBRA allows you to continue your health coverage after losing your job, but you are no longer an active employee. From Medicare’s point of view, COBRA is “retiree coverage,” not active group coverage.
Because of that, COBRA does not protect you from Part B late penalties or enrollment delays.
If you delay enrolling in Medicare Part B because you think COBRA is enough, here’s what can happen:
- You may miss your Special Enrollment Period (SEP) after leaving your job.
- You’ll have to wait for the General Enrollment Period (January 1 – March 31) to sign up.
- Your Part B coverage might not start until July 1 of that year.
- You’ll be charged a late enrollment penalty — 10% of the monthly premium for every full 12 months you delayed enrollment — and you pay that for life.
Why This Is Especially Important in South Florida
South Florida — including Miami-Dade, Broward, and Palm Beach counties — is home to one of the largest retiree populations in the country. Every day, people here turn 65, retire, or leave their jobs expecting COBRA to carry them through until they “get around” to Medicare.
But this misunderstanding leads to a huge number of avoidable mistakes, like:
- People incurring late penalties for life
- Unexpected out-of-pocket medical costs
- Long delays before Medicare coverage actually begins
- Losing access to coverage when COBRA runs out
In a region like South Florida, where healthcare access and costs are a major concern for retirees, it’s critical to understand how and when to enroll in Medicare Part B — and what doesn’t count as creditable coverage.
What You Should Do Instead
If you’re eligible for Medicare and leaving your job, here’s what you should do:
- Enroll in Medicare Part B during your Special Enrollment Period (SEP) — this window lasts 8 months after you lose employer coverage.
- If you want to keep COBRA temporarily, use it only as secondary coverage after you enroll in Medicare.
- Speak to a local Medicare advisor to help compare Medicare Advantage or Medigap (Supplement) plans available in your specific ZIP code.
- Don’t wait — the penalties are permanent, and coverage delays can cause serious issues if you get sick.
Conclusion
In summary, COBRA is not considered creditable coverage for Medicare Part B — and mistaking it as such can lead to lifetime penalties, delayed coverage, and costly gaps in care. This is especially important for retirees and older adults in South Florida, where transitions from employer coverage to Medicare are incredibly common.
If you’re 65 or older and no longer working, you need to enroll in Medicare Part B, even if you’re still on COBRA. Don’t wait until your COBRA runs out. Medicare expects you to act once your active employment ends — not when your COBRA ends.
The rules may seem confusing, but making the right decision now can save you thousands later. Whether you live in Miami, Fort Lauderdale, Boca Raton, or West Palm Beach, getting informed today means enjoying peace of mind tomorrow.
If you’re unsure about your options, reach out to a licensed Medicare advisor who understands the South Florida market and can help you avoid costly mistakes.
