COBRA Coverage in Retirement

Retirement is a COBRA qualifying event; regardless of whether a cooperative offers retiree medical coverage or the retiring employee is enrolled in Medicare, COBRA coverage should always be offered to retiring employees and their dependents.

COBRA coverage also is offered to all retirees regardless of age. A Medicare-eligible employee who is not enrolled in Medicare may decide to elect COBRA coverage upon retirement; however, the qualified beneficiary’s coverage will terminate at the end of the month in which they reach age 65, if their COBRA coverage lasts that long. A Medicare-enrolled employee may decide to maintain Medicare or elect COBRA coverage upon retirement; if they elect COBRA, their coverage will last the full 18 months. In either scenario, the qualified beneficiary can transition from COBRA to Medicare with no lapse in coverage.

How Does This Affect COBRA Administration by UMR?
If a retiring employee enrolled in Medicare elects COBRA coverage, the co-op must provide UMR with proof that the employee was enrolled in Medicare before that employee can enroll in COBRA.

If a retiree or former employee dies while enrolled in COBRA administered by UMR, UMR will transfer the deceased qualified beneficiary’s dependents to the co-op for administration of the extended coverage beyond the COBRA period. Co-ops must administer COBRA and the extended coverage beyond the COBRA period for the surviving dependents of active employees and retirees or former employees currently on COBRA.

Questions?
If you have questions about retirement and COBRA, call the Member Contact Center, Monday – Friday, 7 am to 7 pm CT, at 866.673.2299 (TTY 402.484.9555) or email contactcenter@nreca.coop.

If you have questions about COBRA administration by UMR, call the UMR COBRA Department, Monday – Friday, 7 am to 7 pm CT, at 800.207.1824 or email mycobra@umr.com.