One of the most important decisions you’ll face as you approach military retirement is choosing the right health insurance to ensure you and your family remain adequately and affordably covered. After years of relying on a familiar TRICARE plan during active duty, the array of new healthcare options available to you as a military retiree can feel complex and overwhelming. Understanding the nuances of TRICARE options after retirement — and how they apply to your unique situation, from where you live to your expected medical needs and whether employer-sponsored coverage is available for you or your family — is key to making the smartest choice.
Choosing TRICARE: The Basics
The first thing to know, regardless of which TRICARE plan you choose to enroll in, is that you must sign up within 90 days of your retirement. Once your initial selection is made, you will only be able to change your selection during TRICARE’s annual open season or after a qualifying life event (QLE). You have the option to include your children on your TRICARE coverage until they reach age 21, or age 23 if they are enrolled full-time in an accredited college or university.
TRICARE Prime® v. TRICARE Select®
As a retiree, your two primary TRICARE options are TRICARE Prime® and TRICARE Select®. It’s important to note that TRICARE Prime is only available to those living in a Prime Service Area. You can verify whether you live in a Prime Service Area by entering your zip code in the TRICARE Plan Finder. If both TRICARE Prime and TRICARE Select are available to you, there are several crucial distinctions to note:
TRICARE Prime®
- Operates through a managed care system, which means you will need a referral from your Primary Care Manager (PCM) for any specialist visits
- Typically comes with the lowest out-of-pocket costs
- Provides priority access at military treatment facilities, depending on availability
- Offers the option to visit any TRICARE-authorized provider, even without a referral
- Available to military retirees and their families, regardless of geographic location
- Typically includes higher associated costs, including a deductible and premiums
- Your employer's health coverage will be used first to cover your medical needs. Any remaining balance will then be submitted to TRICARE.
- You must notify TRICARE through DEERS indicating that you will be using other health insurance (OHI).
TRICARE Select®
While TRICARE Prime has lower costs and may be ideal for families living near military treatment facilities, TRICARE Select generally has more flexibility in terms of choosing providers. You can find a full, in-depth cost comparison between TRICARE Prime and TRICARE Select on the TRICARE website.
Employer Healthcare + TRICARE
If you’re planning to continue working after your military retirement, your next employer may offer healthcare coverage. If you elect to enroll in that coverage along with your TRICARE coverage, there are a few key factors to be aware of:
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Your employer's health coverage will be used first to cover your medical needs. Any remaining balance will then be submitted to TRICARE.
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You must notify TRICARE through DEERS indicating that you will be using other health insurance (OHI).
It’s also important to note that signing up for employer coverage may not ultimately reduce your out-of-pocket costs, since TRICARE is generally less expensive than most civilian health insurance plans. Depending on the details of your employer-sponsored coverage, your premium alone may be more than the out-of-pocket costs associated with TRICARE coverage. However, your OHI may cover services that TRICARE does not. It’s important to consider these factors, especially whether your anticipated medical needs will be covered by TRICARE, when making this decision.
Additional Healthcare Insurance Options
If you experience an employment gap or another circumstance that results in a lack of insurance coverage, you may qualify for the following programs:
Transitional Assistance Management Program (TAMP): Offers 180 days of healthcare coverage under TRICARE benefits.
Continued Health Care Benefit Program (CHCBP): Premium-based program offering temporary healthcare coverage for 18 to 36 months when you lose TRICARE coverage.
Visit tricare.mil/LifeEvents/Separating to learn more.
Veterans with service-connected conditions can receive related care through VA Health Care, while Veterans with a 100% Permanent and Total (P&T) VA disability rating may receive care for any condition through VA Health Care, including vision and dental care. In addition, dependents of Veterans with a 100% P&T rating may be eligible for the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) if they are not eligible for healthcare through TRICARE.
TRICARE for Life (TFL) + Medicare
Once you turn 65, your TRICARE coverage transitions to TRICARE for Life (TFL), which serves as a Medicare wrap-around plan. This transition happens automatically as long as you are enrolled in both Medicare Part A and Part B — no additional registration for TFL is required. While TFL itself does not charge premiums, Medicare Part B does, making that your primary out-of-pocket cost for coverage.
TRICARE for Life is an individual, age-based benefit. If your spouse is under 65 when you transition to TFL, they may remain enrolled in TRICARE Prime or TRICARE Select until they reach the age of 65 themselves. With TFL, Medicare pays first on covered services, and TFL then acts as a supplement, covering TRICARE-authorized costs that Medicare does not pay. In most cases, the process is seamless, with providers coordinating claims between Medicare and TFL automatically.
We’re Here for You
Transitioning out of the military brings a lot of big decisions and change. Knowing your health insurance options, such as TRICARE, can help you make the right decision for your family during this exciting and important next stage of life. Be sure to subscribe to our Resource Center for full access to all of our military transition insights and tips.
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