Question
I did not sign up for Medicare Part B when I turned 65 because I was (am) covered by my spouse's employer's medical insurance. My spouse was recently laid off, but with severance benefits that include continued medical insurance (not COBRA) for a while. All the discussions about Medicare's Special Enrollment Period say you can wait until you are no longer covered by medical insurance provided by your (or your spouse's) employer or union if that insurance is available as a result of your or your spouse's "current or active employment." Question: does the severance period qualify as "current or active employment"? In this regard, I note that severance payments are "wages" subject to employment taxes. In addition, my spouse will not be eligible for COBRA benefits until the severance period ends (which is when employment terminates for COBRA purposes). Thank you.
Answer
Hi Bill
Hard to understand. Two entirely different law codes are involved, Medicare and COBRA. In this case the Medicare regulations prevail. Medicare becomes primary when he leaves work and not when the severance package ends. That is also when the Special Enrollment Period starts.
John
