TRICARE Has Limits—What Civilian Military Employees Must Know Before They Retire

peter j-mussoni
June 12, 2025

Key Takeaways

TRICARE does not apply to civilian military employees. If you’re a civilian working for a military branch, your retirement health coverage options differ from those available to uniformed service members.
Federal Employee Health Benefits (FEHB) remains your primary option before and after retirement, and understanding its coordination with Medicare is essential for controlling long-term health costs.

Who TRICARE Is Actually For

It’s a common point of confusion—especially for civilian employees working in military environments. TRICARE is a health care program managed by the Department of Defense, but it only covers uniformed service members, retirees from the military (not civilian federal employees), and their dependents.

If you’re a civilian employee supporting military operations—whether you work on base, in logistics, engineering, or administration—you are not eligible for TRICARE, no matter how long you’ve served. Even if your role involves working side-by-side with active-duty service members, the rules are strict.

In 2025, there are no provisions that allow retired civilian employees to opt into TRICARE. This applies to all agencies under the Department of Defense, including the Army, Navy, Air Force, and other related defense agencies.

What You’re Actually Entitled To as a Civilian Military Employee

Instead of TRICARE, your health insurance benefits are governed by the same system that covers other federal workers: the Federal Employees Health Benefits (FEHB) Program. This is true throughout your career and into retirement.

As long as you:

Are enrolled in an FEHB plan at the time of your retirement, and
Have been enrolled for at least the 5 years before you retire (or for the full time since your first opportunity to enroll),

you can carry your FEHB into retirement. Your agency continues to pay about 70% of your premiums, and you pay the rest—just like when you were working.

How Your Health Coverage Changes at Retirement

When you retire as a civilian military employee, your FEHB coverage doesn’t end. But it can start to work differently, especially once you become eligible for Medicare at age 65. Here’s how it evolves:

Before Age 65

You keep your FEHB as your primary health insurance.
Your premium payments continue through OPM, typically deducted from your annuity.

At Age 65 and Beyond

You become eligible for Medicare.
If you enroll in Medicare Part A and Part B, FEHB becomes your secondary coverage, which can reduce out-of-pocket expenses.
If you do not enroll in Medicare Part B, FEHB continues as your primary coverage—but you could face higher costs for services Medicare would have covered.

Note: There is no requirement for civilian retirees to enroll in Medicare Part B to keep FEHB, unlike the new PSHB rules for some postal retirees.

What Medicare Means for You

Medicare becomes available to you at age 65. As a civilian retiree, you:

Automatically get Part A (hospital insurance) if you’re eligible based on work history.
Must choose whether or not to enroll in Part B (medical insurance), which has a monthly premium.

In 2025, the standard Medicare Part B premium is $185 per month. If you opt in, your FEHB plan typically acts as secondary coverage. Many FEHB plans waive deductibles and coinsurance when combined with Medicare Part B, which can lead to lower costs overall.

However, if you delay enrolling in Part B without other credible coverage, you may face a lifetime penalty. Your FEHB alone does count as credible coverage, so the penalty does not apply as long as you enroll later when your FEHB ends or you decide to switch.

Why Timing and Coordination Matter

How and when you enroll in Medicare significantly affects your total healthcare costs in retirement. Consider this timeline:

Age 64 ½: You get notified by Medicare about upcoming eligibility.
3 months before you turn 65: Your Initial Enrollment Period begins.
At age 65: If enrolled in both Medicare A and B, your FEHB plan becomes secondary.

Choosing the right time to enroll in Part B is critical. If your FEHB has strong benefits, you may not need Part B immediately. But coordination of benefits can reduce deductibles, copays, and coinsurance dramatically, making Part B worth considering.

What About Vision, Dental, and Long-Term Care?

Unlike TRICARE, which sometimes bundles dental and vision, FEHB plans don’t include these benefits by default. You have to enroll separately:

FEDVIP (Federal Employees Dental and Vision Insurance Program) offers comprehensive options during Open Season.
You can carry FEDVIP coverage into retirement if you’re enrolled at the time you retire. There’s no 5-year rule for FEDVIP.

For long-term care, you can explore:

FLTCIP (Federal Long Term Care Insurance Program), though as of 2025, this remains suspended for new applicants.
Private policies, which may be costly and vary widely in coverage.

These are not covered by Medicare or FEHB, so additional planning is essential.

Understanding the Role of the Thrift Savings Plan (TSP)

While your health benefits continue in retirement, your retirement income from the TSP must be managed carefully. Civilian military employees under FERS often rely on three sources:

FERS Basic Annuity
Social Security (available as early as age 62)
TSP withdrawals

TRICARE retirees may have different budgeting expectations due to lower health care costs. As a civilian, your healthcare spending in retirement could be higher, especially if you don’t coordinate Medicare properly.

Be sure to:

Plan for increased premiums and cost-sharing as you age.
Use your TSP strategically to cover out-of-pocket health expenses not covered by FEHB or Medicare.

Common Misconceptions About TRICARE and Civilian Employees

Many civilian military employees assume they’ll qualify for TRICARE simply because they work on a military base or support active-duty personnel. This is incorrect.

Here’s what doesn’t qualify you:

Civilian service in a military hospital
Working for the Department of Defense
Holding a security clearance or working overseas

Eligibility for TRICARE is tied strictly to military service—not the agency or department you work for. If you didn’t take the oath as a uniformed service member, TRICARE is not part of your retirement picture.

The 5-Year Rule and Other Retirement Triggers

To retain FEHB in retirement, remember the 5-year rule: you must be enrolled in FEHB for the five years immediately before your retirement. If you don’t meet this requirement, you cannot carry FEHB into retirement unless you’ve been continuously covered since your first opportunity to enroll.

Other milestones to watch:

Age 62: Earliest age for Social Security under FERS (with reduction).
Minimum Retirement Age (MRA): Between 55 and 57 depending on your birth year.
Age 65: Medicare eligibility.

These benchmarks are important when structuring your benefits and evaluating when to retire.

What You Can Do Right Now

If you’re still working:

Review your FEHB plan’s coordination with Medicare.
Enroll in FEDVIP if you want dental or vision in retirement.
Consider increasing your TSP contributions to account for future health expenses.
Confirm your FEHB enrollment history to ensure you meet the 5-year rule.

If you’re planning to retire soon:

Decide if you’ll enroll in Medicare Part B.
Compare costs with and without Medicare coordination.
Check with your HR office to confirm retirement eligibility and benefit projections.

Health Coverage in Retirement Depends on What You Know Now

Your future health coverage doesn’t follow the military model. As a civilian military employee, you need to plan for a retirement that doesn’t include TRICARE. That means understanding FEHB, knowing how Medicare affects it, and preparing financially for costs that may grow over time.

If you want help optimizing your retirement decisions, speak with a licensed professional listed on this website. They can walk you through your unique situation and ensure your benefits work the way they should.