Sponsors (8)
The bill protects Medicare-eligible people on COBRA—by allowing a one-time Part B enrollment that preserves coverage months and prevents penalties and by preventing COBRA termination for Medicare eligibility—while imposing administrative burdens and the risk of cost-shifts, and it limits relief by making the enrollment opportunity a one-time benefit.
People enrolled in COBRA on or after Jan 1, 2026 (especially Medicare-eligible individuals) get a one-time special enrollment to sign up for Medicare Part B that covers months they were on COBRA plus the following three months, and those COBRA months count toward avoiding Part B late‑enrollment penalties.
COBRA plans, insurers, and employers are prohibited from terminating or cutting COBRA benefits solely because a person is eligible for but not enrolled in Medicare Part B, protecting continuity of employer-based coverage.
COBRA notices will be updated (by Jan 1, 2026) to explain Medicare secondary payer rules and coordination between COBRA and Medicare, helping beneficiaries understand their choices.
Small employers, insurers, and some governments will face higher administrative complexity and costs to update notices, change processes, and ensure compliance with the new coordination rules.
Limiting the special Part B enrollment to one lifetime may leave Medicare-eligible people (including those with disabilities) without a penalty-free way to enroll if they encounter new coverage gaps later.
Plans may need to adjust premium-setting or cost-sharing to account for people simultaneously eligible for COBRA and Medicare, potentially shifting costs onto employers, other enrollees, or low-income individuals.
Based on analysis of 2 sections of legislative text.
Grants a one-time lifetime Medicare Part B SEP for people who start COBRA-like coverage on/after Jan 1, 2026, counts COBRA months for Part B late-enrollment rules, and bars COBRA plans from cutting benefits due to non-enrollment.
Introduced April 8, 2025 by Lloyd K. Smucker · Last progress April 8, 2025
Creates a one-time lifetime Medicare Part B special enrollment period for people who begin COBRA-like continuation coverage on or after January 1, 2026. Months spent in that COBRA coverage (and the three months after it ends) count toward the Part B enrollment window and can prevent Part B late-enrollment penalties, and COBRA plans, insurers, and employers may not reduce or end COBRA benefits just because a person is eligible for Part B but not enrolled. The Department of Labor must update COBRA notices to explain how Medicare secondary-payer rules interact with this new enrollment rule.