One of the most common questions people ask as they approach Medicare eligibility is: “What is creditable coverage?”

Creditable coverage, as it relates to Medicare, refers to health insurance that is considered as good as or better than Medicare. If someone has creditable coverage when they turn 65, they can safely delay enrolling in Medicare without owing a late-enrollment penalty.

What counts as creditable coverage?

The most common type is large group health insurance from an employer with more than 20 employees. This is generally the only form of coverage that protects someone from Medicare penalties if they choose to postpone enrollment.

Examples of NON-creditable coverage include:

• COBRA
• Retiree insurance
• VA benefits
• CHAMPVA
• TRICARE
• Federal Employee Health Benefits (FEHB)

If you have one of these types of coverage when turning 65, it’s important to review Medicare enrollment timelines carefully to avoid unexpected penalties.

If you’d like more information or need guidance on a specific situation, feel free to contact the author directly.