A bipartisan group of Congress members, led by U.S. Rep. Lloyd Smucker (R-PA), has introduced legislation that seeks to protect seniors who enroll in Medicare Part B after their COBRA coverage ends.
Under current law, all seniors must enroll in Medicare Part B within three months of turning 65. Seniors who continue working past 65 and maintain employer-sponsored coverage are granted an exception. However, COBRA continuation coverage does not qualify for this exemption. Thus, seniors who choose to extend their coverage through COBRA instead of enrolling in Medicare are subject to waiting periods of up to a year before they can begin receiving coverage and risk a lifetime of increased Part B premiums and other financial penalties.
The Medicare Enrollment Protection Act aims to shield seniors who enroll in Medicare Part B after their COBRA coverage ends from potential coverage gaps and late enrollment penalties. It would do this by closing this loophole by creating a transition period that would allow seniors on COBRA to enroll in Part B during any month they have active COBRA coverage. So, as long as they enroll in Medicare Part B before their COBRA coverage ends, they wouldn’t be subject to a permanent late enrollment penalty.
“This legislation is a commonsense effort to make health care more affordable for American seniors by providing a transition period before Medicare late enrollment penalties are applied,” Smucker said. “Seniors should be able to make their own choices and enroll in Medicare at an age that makes sense for themselves, not one set by the federal government. I have been fighting for this change to make the enrollment process easier since coming to Congress. I will work to secure support from my colleagues on both sides of the aisle and look forward to this bill’s passage.”
The bill was also sponsored by Rep. Angie Craig (D-MN), Gus Bilirakis (R-FL), Mike Thompson (D-CA), Erin Houchin R-IN), and Donald Norcross (D-NJ).
“Seniors have paid into Medicare their whole life and it is time we make it easier to access the healthcare they have earned,” Norcross said. “Seniors already have to overcome complex hurdles to find the coverage they need, and they shouldn’t face excessive penalties for the time it takes them to do so.
The legislation has garnered support from national and local advocates, including the National Association of Benefits and Insurance professionals (NABIP).
“Ensuring that all seniors, including those on COBRA, receive fair and equitable treatment is a vital step forward. This proposal empowers seniors to make healthcare choices that best fit their needs without the worry of lifetime penalties. NABIP commends Representative Smucker’s commitment to this issue and urges Congress to support this proposal, ensuring seniors are not subjected to undue financial hardships while maintaining access to continuous healthcare coverage,” NABIP CEO Jessica Brooks-Woods said.