COBRA & Retirement

Did you know that there are 10,000 employees retiring every single day? This number consist of all those Baby Boomers out there. The oldest being in their 70s and youngest around the age of 55. Between 1946 and 1964, there were 76 million people that were born. That means in one year's time, that is 4 million retirees.

As you can image with the great amount of retiring individuals today, retirement is a very hot topic of conversation. Most people think of this next step as an all-expense paid vacation from work, which is a big misconception. A lot of individuals are unaware of the various factors that go into insuring their retirement. Some of these factors being quite expensive!

Upon retirement, there are several things one needs to consider. One of those being health insurance. If you have delayed Medicare enrollment, you will be given an 8 month "Special Enrollment Period". This timeframe will begin the month following the date of retirement or when the group insurance ends. If you elect to use COBRA for more than 8 months after ending employment, you will be penalized for missing their "S.E.P" and receive late enrollment penalties. If you do not know what COBRA is, you should know that it is essentially a "temporary coverage interim". This is designed for people that have unexpected circumstances occur, leaving a gap in coverage. COBRA coverage is typically accessible for up to 18 months.

If you continue working and enroll in Medicare, you will need to understand which insurance is primary and secondary. If the company has fewer than 20 employees, the employer coverage pays secondary to Medicare. If you do not enroll in Medicare, this will result in a higher premium penalty. If the company has more than 20 employees, then the employer coverage pays primary to Medicare. With this option, you may choose to delay enrollment while still employed.

If you are in this situation and unsure what the next step after retirement might be, MWG Senior Services will sit down with you and layout all the available options (free of charge).

MWG Senior Services can be your all-in-one resource to help you navigate the Medicare maze. Anything from enrolling in Medicare, picking a Medicare supplement plan or other retiree insurance options, we have got you covered. Give us at (877) 759-5760 or email


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