Still Paying for COBRA After 65 in Washington? There's Something Worth Knowing.
The letter arrives a few weeks after you leave your job. It lists your new monthly premium — the full cost, no longer split with your employer — and most people see that number and think: this is what it costs to stay covered. No other options until Medicare kicks in.
For people turning 65 in Washington, that assumption is costing real money. Sometimes a lot of it.
There are two separate problems with staying on COBRA after 65. Most people don't know about either one until one of them has already done its damage.
What COBRA Actually Costs — And Why It Feels Like a Surprise
When you were working, your employer was paying 70 to 85 percent of your health insurance premium. You saw only the small portion that came out of your paycheck — often $150 to $300 a month for individual coverage.
COBRA continues the exact same plan. What it doesn't continue is your employer's contribution.
The average COBRA premium for individuals in 2026 runs $700 to $900 per month. In Washington, costs typically run toward the higher end of that range. Some Washington residents on COBRA are paying over $1,000 a month for coverage they assumed would cost roughly what it always had.
That's not a scam or an error. That's what the coverage actually cost all along — you just never saw your employer's share until now.
What Medicare and a Supplement Plan Actually Cost in Washington
Here's the comparison most people on COBRA at 65 never see.
Medicare Part B in 2026: $202.90 per month.
A Medicare Supplement Plan G in Washington for someone turning 65: approximately $140 to $260 per month depending on the carrier. Washington uses community rating, which means your premium is based on the plan — not your age. A 65-year-old and a 75-year-old pay the same rate for the same plan.
A standalone Part D prescription drug plan: $30 to $50 per month on average.
Total: roughly $375 to $515 per month for comprehensive Medicare coverage with a Supplement plan.
Compare that to $700 to $900 on COBRA.
| Coverage Type | Monthly Cost | Annual Cost |
|---|---|---|
| COBRA (individual, WA average) | $700–$900 | $8,400–$10,800 |
| Medicare Part B | $202.90 | $2,434.80 |
| Medicare Supplement Plan G (WA) | $140–$260 | $1,680–$3,120 |
| Medicare Part D drug plan | $30–$50 | $360–$600 |
| Medicare + Supplement + Part D total | $375–$515 | $4,500–$6,180 |
| Estimated monthly savings vs COBRA | $200–$400 | $2,400–$4,800 |
Supplement premiums in Washington are community rated — meaning they do not rise with age. Actual costs vary by carrier, plan, and income. IRMAA surcharges apply for higher-income enrollees.
Most Washington residents who make this comparison and enroll in Medicare at 65 save somewhere between $200 and $400 per month. Over 18 months — the full length of COBRA coverage — that's $3,600 to $7,200 that stayed in their pocket instead of going toward a premium they didn't have to pay.
COBRA is a bridge. For people under 65 with no other options, it's a real one. For most people who are already 65 and eligible for Medicare, it's an expensive detour.
The Second Problem — The Clock Nobody Told You About
Staying on COBRA after 65 doesn't just cost money. It can create a permanent penalty.
COBRA does not count as creditable coverage for Medicare Part B. That distinction matters because Medicare gives you an 8-month Special Enrollment Period when your active employment ends — and COBRA does not pause that window or extend it. Learn more about creditable coverage in our glossary.
Federal COBRA lasts up to 18 months. Washington mini-COBRA, which extends continuation coverage to employees of smaller employers, also lasts up to 18 months. The Medicare penalty-free window lasts 8.
If you leave work in July and take COBRA, your 8-month window closes the following March — regardless of whether your COBRA is still active. If you haven't enrolled in Medicare Part B by then, the late enrollment penalty applies: 10 percent added to your monthly premium for every 12 months you were eligible and didn't enroll. That penalty is permanent.
Two separate problems, running simultaneously. Overpaying each month. A permanent penalty building in the background.
Why Most People Stay — And Why That Logic Breaks Down
It's not carelessness. It's familiarity.
Same doctors. Same network. Same coverage they've had for years. Switching feels like a risk — especially when healthcare matters. The COBRA notice arrives and reads like a bill for something necessary, not a choice between options.
What doesn't arrive in the mail is a comparison showing what Medicare and a Supplement plan would cost for the same level of coverage. Nobody sends that.
In Washington, where community rating means Supplement premiums are competitive regardless of your age, and where guaranteed-issue switching rights mean you can change plans any time without medical underwriting, for most people in Washington, enrolling in Medicare at 65 makes more sense than staying on COBRA.
It's not the right answer for everyone. There are situations — specific prescriptions, specific providers, specific timing — where a brief COBRA bridge makes sense. But it should be a deliberate choice based on a real comparison, not a default because the other option wasn't explained.
The Washington PEBB Situation
Washington state employees — teachers, county workers, city employees, state government staff — have access to PEBB continuation coverage when they retire. It follows the same rules as COBRA for Medicare purposes.
PEBB continuation does not count as creditable coverage for Part B. The 8-month window runs from the day employment ends, not when the PEBB continuation runs out. The cost comparison applies here too — PEBB continuation premiums can be substantial, and Medicare with a Supplement plan is frequently less expensive for the same protection.
If you're retiring from Washington state employment and planning to stay on PEBB continuation while you sort out Medicare, that conversation is worth having before you commit to the first premium payment.
The Two Questions Worth Asking Right Now
If you're currently on COBRA and 65 or older — or approaching 65 and expecting to take COBRA when you leave work — two questions determine your situation.
How many months has it been since your active employment ended?
And: have you actually compared what Medicare and a Supplement plan would cost against your current COBRA premium?
Most people who ask the second question are surprised by the answer.
That's exactly what a quick call is for.
Want to see how your COBRA costs compare to Medicare?
As a licensed Medicare advisor in Washington State, I'll walk through the real numbers — COBRA vs. Medicare Part B, a Supplement plan, and Part D — so you can see exactly where you stand. No products pushed. Just clarity.
There's no charge to talk and no obligation to decide. If it's not the right fit, I'll tell you that too.
Michael Gurr is a licensed Medicare and retirement advisor serving Pierce County and Washington State.
Frequently Asked Questions
Do I have to stay on COBRA until it runs out if I'm turning 65?
How much does COBRA cost compared to Medicare in Washington?
Does COBRA count as creditable coverage for Medicare?
What is the 8-month Medicare enrollment window?
I'm a Washington state employee retiring with PEBB coverage. Is it the same situation?
Have questions about your specific situation?
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