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Military Retirement Benefits Are Strong—But TRICARE Alone May Not Be Enough

Site Admin
May 27, 2025

Key Takeaways

TRICARE offers robust coverage for military retirees, but relying on it alone may leave you vulnerable to unexpected healthcare costs, especially as you age into Medicare eligibility.
Understanding how TRICARE works with Medicare and knowing when to consider supplemental or alternative options is essential to protecting your health and finances.

TRICARE Isn’t a One-Size-Fits-All Solution After Retirement

If you’re a military retiree or soon-to-be retiree, you already know that TRICARE is one of the most comprehensive healthcare benefits available in the public sector. However, it’s not always the final answer to all your post-service healthcare needs. Especially as you approach age 65, your coverage options shift, and the financial landscape changes.

While TRICARE provides excellent foundational coverage, gaps emerge depending on your age, location, and whether you become Medicare-eligible. Without a proactive plan, you may face higher out-of-pocket costs than you expect.

Understanding TRICARE Eligibility and Coverage Tiers

TRICARE eligibility and costs vary depending on your status:

Retired Service Members Under Age 65: Most retirees qualify for TRICARE Prime or TRICARE Select.
Medicare-Eligible Retirees (Age 65+): You become eligible for TRICARE For Life (TFL) if you enroll in Medicare Part A and B.

In 2025, the Department of Defense continues to administer TRICARE through regional contractors. Your choice between TRICARE Prime and Select (before age 65) determines your network flexibility and out-of-pocket responsibilities. Once you turn 65, you are required to enroll in Medicare Part B to retain TRICARE coverage under TFL.

TRICARE For Life becomes your secondary payer after Medicare, meaning Medicare pays first and TFL covers the rest—but not always everything.

Medicare and TRICARE: What Happens at Age 65?

Once you reach age 65, you must be enrolled in both Medicare Part A and Part B to maintain TRICARE coverage. At that point, you transition into TRICARE For Life automatically.

In this setup:

Medicare becomes your primary payer.
TRICARE For Life becomes your secondary payer.

This coordination is generally effective, but it has limitations. TFL doesn’t cover routine dental or vision care, long-term care, or hearing aids. Additionally, if you delay Part B enrollment, you risk losing TRICARE coverage altogether.

What TRICARE For Life Covers—And What It Doesn’t

TRICARE For Life generally covers:

Medicare-covered services
Prescription drugs via the TRICARE Pharmacy Program
Inpatient and outpatient care
Skilled nursing facility care (short-term, following hospitalization)
Durable medical equipment

But it doesn’t cover:

Long-term custodial care
Dental and vision care (except under specific military dental plans)
Hearing aids
Acupuncture and chiropractic services not covered by Medicare

If you anticipate needing any of the above services regularly, TRICARE alone may not be enough.

Managing Out-of-Pocket Costs After Retirement

One of the greatest advantages of TRICARE is its low out-of-pocket burden. However, even with TRICARE For Life, you can still encounter these costs:

Medicare Part B premiums, which are mandatory to maintain TFL eligibility. In 2025, the standard Part B premium is $185 per month.
Prescription drug costs, which, while lower than many plans, still exist.
Care received overseas, which may require upfront payment before reimbursement.

Additionally, if you or your spouse is not yet Medicare-eligible while the other is, you may need to navigate a combination of TRICARE Select, TRICARE Prime, and employer or marketplace coverage until both reach age 65.

Retired Reservists and the TRICARE Reserve Select Transition

If you retired from the reserves, you’re in a slightly different situation. Prior to age 60, you may be eligible for TRICARE Retired Reserve (TRR), which comes with higher premiums than TRICARE Prime or Select.

At age 60, you gain access to the standard TRICARE retiree options, including Prime and Select. At 65, Medicare enrollment triggers TRICARE For Life eligibility.

It’s important not to confuse TRR with TRICARE Prime or Select—the coverage levels and out-of-pocket costs differ significantly.

Dental and Vision Are Not Included

Retired service members often mistakenly believe TRICARE includes comprehensive dental and vision benefits. In reality:

TRICARE covers only limited dental or vision services (and usually only when medically necessary).
FEDVIP (Federal Employees Dental and Vision Insurance Program) is available separately to retirees.

You can enroll in FEDVIP during the annual Open Season or after a qualifying life event. This extra coverage may be essential as you age and encounter new dental or vision needs.

When a Supplemental Policy May Make Sense

While TRICARE For Life is excellent secondary coverage, some retirees find value in an additional Medicare Supplement policy or dental/vision plans. However, you cannot use a Medicare Supplement (Medigap) policy with TRICARE For Life—they’re not compatible.

Instead, you may want to:

Explore separate long-term care insurance
Enroll in FEDVIP for dental and vision
Review other insurance options if you plan to live abroad

Choosing supplemental insurance depends heavily on your health status, financial situation, and personal preferences.

Living Overseas? TRICARE Has Limits

TRICARE For Life provides international coverage, but there are caveats:

Medicare doesn’t cover overseas care.
TRICARE becomes the primary payer in foreign countries.
You may have to pay out-of-pocket and file for reimbursement.

This structure makes planning essential if you expect to live or travel extensively outside the United States. You may want to explore international health insurance if this applies to you.

TRICARE Young Adult: A Temporary Solution for Dependents

If you have adult children between 21 and 26, they lose dependent eligibility under TRICARE at age 21 (or 23 if enrolled in college). TRICARE Young Adult (TYA) can provide temporary coverage, but it comes with separate enrollment and higher premiums.

TYA ends at age 26, after which your child must find their own insurance, either through an employer or the healthcare marketplace.

What Happens if You Delay Medicare Part B?

You must enroll in Medicare Part B when you become eligible to keep TRICARE For Life. If you delay enrollment:

You lose TRICARE coverage until you enroll in Part B.
You may face a lifetime Part B late enrollment penalty.

There are only limited exceptions, such as having employer-sponsored coverage at age 65. Even then, you need to enroll promptly once that coverage ends to avoid losing TRICARE.

Planning Ahead: Your Action Checklist

To make the most of your TRICARE and retirement healthcare:

Review your TRICARE eligibility annually as your age and family situation evolve.
Enroll in Medicare Parts A and B when you turn 65.
Consider FEDVIP enrollment for dental and vision.
Assess long-term care needs early, as this is not covered by TRICARE or Medicare.
Talk to a licensed professional about coordinating benefits if your spouse has other coverage.

TRICARE Is Strong, But Pairing It Wisely Is Smarter

As a retired service member, you earned your TRICARE benefits through years of dedicated service. But the evolving nature of healthcare in retirement means that relying solely on TRICARE—especially after age 65—could leave you with unexpected costs or limited access to services like dental, vision, or long-term care.

Take the time now to evaluate how TRICARE For Life interacts with Medicare, and whether you should pair it with other programs such as FEDVIP or long-term care insurance. Your retirement health plan should be as strong as your military career—strategic, resilient, and ready for the future.

To get personalized help with coordinating TRICARE, Medicare, and other retirement benefits, connect with a licensed professional listed on this website.