Medicare retirees confront coverage gaps and enrollment hurdles

When a retiring spouse enrolls in Medicare, the surviving spouse’s employer‑based health coverage can end in the same week, creating a coverage gap. The couple has a 60‑day window to choose between extending coverage through COBRA or purchasing a plan on the ACA marketplace. Late enrollment in Medicare Part B can trigger a 10 % monthly penalty.

Separately, Medicare Advantage plans that terminate or lose a major hospital from their network trigger a Special Enrollment Period (SEP). Beneficiaries receive a guaranteed 63‑day window to select another Medicare Advantage plan, a standalone Part D prescription plan, or return to Original Medicare. During this time, Medigap insurers must offer eligible policies—most commonly Plan G—without medical underwriting.