An employee over the age of 65 who already enrolled in Medicare Part A is now being separated due to disability. Does the company (self-insured) have to offer him 18 months of COBRA? If yes, which plan becomes primary and which plan is secondary?
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The employee in your question would be eligible for COBRA enrollment. He will also be eligible to enroll in Medicare Part B coverage, without penalty, for 8 months after the end of employment.
The 8 month Special Enrollment Period is based on his separation from employment. Note that he will need to sign up within 8 months from the end of employment – not 8 months from the end of COBRA (if he chooses to enroll) – in order to sign up without penalty.
More information on the Special Enrollment Period, including forms and documentation he will need, is available at this website under the drop-down menu labelled “I have employer/union coverage” and then under the heading “When Employer/Union Coverage Ends.”
Medicare coverage will always be primary to COBRA coverage, so the COBRA coverage, if elected, would function as gap insurance to cover additional benefits not otherwise provided by the employee’s existing Medicare coverage.