Sponsors (8)
The bill improves and clarifies Part B enrollment and premium protections for Medicare-eligible COBRA enrollees, reducing coverage gaps and preserving credits, while imposing administrative requirements and potential cost pressures on employers and plans and limiting the COBRA-based special enrollment period to a one-time use.
Medicare-eligible COBRA enrollees (people eligible for Medicare who are on COBRA) can enroll in Part B during any month of COBRA coverage and for three months after, with Part B coverage beginning the first day of the month after enrollment, reducing gaps in Medicare Part B coverage.
Medicare-eligible COBRA enrollees can exclude months when they were enrolled in COBRA from Part B premium-reduction calculations, helping preserve premium credits and lower out-of-pocket Part B premiums for eligible low-income beneficiaries.
COBRA continuation coverage cannot be cut or terminated solely because an enrollee is eligible for but has not yet enrolled in Part B, preserving employer/issuer continuation benefits until the enrollee actually enrolls in Part B.
Medicare-eligible COBRA enrollees are limited to using the COBRA-based special enrollment period only once in their lifetime, which could leave people who face later changes in circumstance without the same enrollment flexibility.
Employers and health plans will need to track COBRA months and adjust premium-reduction calculations, increasing administrative complexity and costs that may be passed on to employees via higher premiums or reduced benefits.
The requirement to revise COBRA notices and implement these changes by January 1, 2026 creates a near-term compliance burden for plan administrators and relevant government agencies.
Based on analysis of 2 sections of legislative text.
Creates a permanent Medicare Part B SEP for people on COBRA starting with COBRA begun on/after Jan 1, 2026; adjusts coverage start, premium treatment, and protects COBRA benefits.
Introduced April 8, 2025 by Lloyd K. Smucker · Last progress April 8, 2025
Creates a permanent Medicare Part B special enrollment period (SEP) for people enrolled in COBRA continuation coverage that begins on or after January 1, 2026. The SEP lets eligible individuals enroll in Part B while on COBRA or within three months after COBRA ends (one lifetime use), changes when coverage starts, adjusts how Part B premium credits are calculated for months on COBRA, prevents COBRA plans from cutting off benefits solely because someone is eligible for but not yet enrolled in Part B, and requires updated COBRA notices explaining how Medicare rules apply.