Interaction between COBRA and Medigap Guaranteed Issue Requirements in Situations Involving Termination of Employer Group Coverage
This bulletin addresses the situation in which a Medicare beneficiary has supplemental health coverage through an employee welfare benefit plan, and the plan is terminated because the employer goes out of business, as a result of bankruptcy or otherwise. The bulletin clarifies that the individual has Medicare supplement (Medigap) guaranteed issue rights whether or not the individual is offered COBRA continuation coverage by a related entity, such as a parent corporation.i Also, this bulletin clarifies that an individual who is offered, and elects, COBRA coverage under these circumstances, rather than applying for a Medigap policy before the end of the guaranteed issue period, will have a second Medigap guaranteed issue period if the individual subsequently exhausts the COBRA benefits.
Issued by: Centers for Medicare & Medicaid Services (CMS)
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