# Any issues with Cobra if you used it before reaching 65?



## Dennis K (Feb 10, 2017)

If I retire before reaching age 65 I will most likely take Cobra from my place of employment. Cobra is good for 18 months which will be more than enough time before I reach 65.  I already know the cost which comes out to what I would pay under Obamacare or a private insurance. A lot.
The nice thing about Cobra, as I understand it, is that it carries on your insurance with no questions asked along with not having to deal with finding and setting up an account.

I was wondering if anyone out there has used the Cobra option to fill the gap time and if there were any issues other than the high premiums which are unavoidable if you give up your work insurance before you reach medicare age.


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## SeaBreeze (Feb 10, 2017)

When I took early retirement I used Cobra and it was an easy transition from my health plan from my employment, but I was shocked at the high cost of paying it all out of pocket compared to low cost coverage through my employer.  But, I never did without health care coverage, even though I rarely see a doctor and am pretty healthy, so I wasn't about to let it lapse just in case of a serious illness or accident.  That was before the ACA really kicked in.  When my Cobra ran out and I had lowered costs through the ACA, I was happy about that.  I didn't want to spend all my retirement savings on health care.  I had no issues at all with Cobra.


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## Ken N Tx (Feb 11, 2017)

SeaBreeze said:


> When I took early retirement I used Cobra and it was an easy transition from my health plan from my employment, but I was shocked at the high cost of paying it all out of pocket compared to low cost coverage through my employer.  But, I never did without health care coverage, even though I rarely see a doctor and am pretty healthy, so I wasn't about to let it lapse just in case of a serious illness or accident.  That was before the ACA really kicked in.  When my Cobra ran out and I had lowered costs through the ACA, I was happy about that.  I didn't want to spend all my retirement savings on health care.  I had no issues at all with Cobra.



..I had Cobra for about a year when I took my early retirement. I had to have it for both me and my wife. Other than the high cost, I had no issues and did not have to use it..


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## RustyatMMC (Feb 12, 2017)

Dennis K said:


> If I retire before reaching age 65 I will most likely take Cobra from my place of employment. Cobra is good for 18 months which will be more than enough time before I reach 65. I already know the cost which comes out to what I would pay under Obamacare or a private insurance. A lot.
> The nice thing about Cobra, as I understand it, is that it carries on your insurance with no questions asked along with not having to deal with finding and setting up an account.
> 
> I was wondering if anyone out there has used the Cobra option to fill the gap time and if there were any issues other than the high premiums which are unavoidable if you give up your work insurance before you reach medicare age.



Dennis, 
COBRA is an "individual" version of your employer's policy plus a small administration fee.  Depending on what your company offered as far as benefits vs premium, COBRA can work well for you until you turn 65.  As you noted, it only lasts 18 months in most cases.  

Also, COBRA is not considered creditable coverage as far as Medicare, so as soon as you qualify for Medicare Part B (when you turn 65), you will need to drop COBRA and jump on Medicare Part A, B, D, and Medicare supplement (medigap) plan.  In most cases I have seen, COBRA is more expensive and has less coverage as compared to Medicare Part A, B, D, and a med supp plan.  

Some people like Medicare advantage plans, but my experience is that medicare advantage plans may work well in certain areas of the country where the networks are strong.  So always check the pros and cons of each when you turn 65. 

With the political uncertainty of the ACA, I would likely recommend you hang on to COBRA until you turn 65.  If you qualify for a subsidy under the ACA, then you might look at the ACA plans also.

Good luck
Rusty


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## Manatee (Mar 13, 2017)

I went to the HR manager where I was working and got an exact figure that it would cost me for myself and my wife.
The only problem that we had was that Cobra ran out before my wife was old enough for medicare.  They were required to offer the same coverage but the price greatly escalated as an individual.


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## Aunt Bea (Mar 13, 2017)

I used COBRA when I stopped working and it was very reasonable.  When the COBRA ran out I was allowed to continue purchasing my insurance through my employer and the premiums became astronomical because I was transferred to a retiree insurance pool that was considered high risk because of the age and number of claims submitted.  When the ACA and state insurance exchanges started I switched over to them, in the beginning the savings were significant but now the premiums are becoming quite high.  I'm hoping I can stay in the ACA or transition to Trumpcare until I finally reach Medicare age, we'll see.

My retirement has been like crossing a stream by jumping from one dry rock to another.  I land on a rock, rest for a little while, look for the next dry rock and jump again.  I hope I don't fall in before I finally reach age 65, LOL! 

Good luck!


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## mathjak107 (Mar 13, 2017)

the deductibles and out of pockets i have on my plan are so high i am stalling having anything done except my yearly physical . i have a few more months to go to medicare .

my cobra plan had a 2500 deductible .


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