Interaction between COBRA and Medicare in C-Suite Executive Severance and Retirement Arrangements

Interaction between COBRA and Medicare in C-Suite Executive Severance and Retirement Arrangements

Both companies and their C-suite executives should be mindful of the interactions between COBRA and Medicare and their implications when negotiating a severance or retirement arrangement. This is because Medicare enrollment can terminate COBRA coverage, depending on the timing of when an executive elects COBRA and when they enroll in Medicare, and because an executive will be penalized under Medicare if they do not timely enroll after their medi…