properly prepared to answer the following Medicare, COBRA and health coverage questions for your age-65+ employees?
Eligible vs. Entitled
First let’s review the definition of Medicare “eligible” versus Medicare “entitlement,” as they do not have the same meaning.
Individuals become “entitled” to Medicare upon the effective date of enrollment in either Medicare Part A or B, whichever occurs earlier. For most individuals this is when age 65 is attained.
Being eligible to enroll in Medicare does not constitute being “entitled” to Medicare. Once someone reaches age 65, active enrollment in Medicare must occur by applying for Social Security benefits. If individuals have
not applied for such benefits, Medicare is not automatic. Being “eligible” means the individual has met the criteria, attained age 65, but has not applied for Social Security benefits and therefore is not on Medicare.
Example. Employee Bob turns 65. He is eligible for Medicare, but decides not to enroll. Bob is Medicare eligible but not Medicare entitled. Once he actively signs up for Medicare (Social Security benefits), his status changes to Medicare entitled.
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