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TRICARE and Federal Retirement Don’t Always Work Together—Know the Limits Before You Retire

Site Admin
May 27, 2025

Key Takeaways

TRICARE eligibility does not automatically guarantee seamless coordination with federal retirement benefits like FEHB or Medicare.
Retiring from a federal civilian position while relying on TRICARE may limit your future healthcare choices unless you meet specific conditions.

Understanding TRICARE and Federal Retirement

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TRICARE is a healthcare program for uniformed service members, retirees, and their families. It provides coverage similar to civilian health insurance but is rooted in military service. If you’re a public sector employee who has also served in the military, you may be eligible for TRICARE after retirement. However, simply being eligible doesn’t mean it’s always the right or only choice once you leave federal service.

If you’re planning to retire under the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS), and you qualify for TRICARE, it’s important to understand how it aligns—or doesn’t—with other federal health benefits.

TRICARE Eligibility Requirements After Military Service

To continue using TRICARE after retirement, you must meet specific criteria:

You must be a retired uniformed service member (active duty or reserve).
You must be entitled to retired pay or a retirement annuity.
You must be registered in the Defense Enrollment Eligibility Reporting System (DEERS).

Your eligibility for TRICARE does not come from your federal civilian service—it must come from your military background. This distinction is critical if you’re a federal employee working in a military institution but never served on active duty.

FEHB vs. TRICARE: A One-or-the-Other Decision?

As a federal employee or retiree, you’re eligible for the Federal Employees Health Benefits (FEHB) Program. FEHB offers a wide selection of plans and is subsidized by the government. On the other hand, TRICARE offers more limited plan options but can be lower in overall cost if you qualify.

Here’s the challenge: You can’t use both plans simultaneously in a full, coordinated way. If you keep FEHB and you’re also TRICARE-eligible, you may be paying for coverage you don’t need. But dropping FEHB too early can backfire, especially if your TRICARE access changes.

Keeping FEHB in Retirement Requires Continuous Enrollment

To be eligible to continue FEHB into retirement, you must:

Have been enrolled (or covered as a family member) in FEHB for the five years leading up to your retirement date, or from your first opportunity to enroll.
Retire with an immediate annuity (not a deferred one).

If you drop FEHB after retirement, you may not be able to re-enroll later. That’s a risk if your TRICARE coverage changes due to future eligibility rules, residence status, or coverage restrictions.

Medicare Becomes a Factor at Age 65

Once you turn 65, Medicare becomes part of the picture. Here’s how:

TRICARE beneficiaries must enroll in Medicare Part A and Part B to remain eligible for TRICARE For Life (TFL).
FEHB enrollees are not required to enroll in Medicare, but most do, especially in Part A, since it’s premium-free for most.

TRICARE For Life acts as a secondary payer to Medicare. FEHB, on the other hand, can function as either primary or secondary coverage depending on your choices. This makes coordination far more complex.

Why Some Retirees Regret Dropping FEHB

Many federal retirees drop FEHB because they qualify for TRICARE and want to avoid what they see as duplicative costs. However, the reality is more nuanced:

If you later lose TRICARE access (due to remarriage, residency abroad, or administrative status changes), you can’t always return to FEHB.
TRICARE’s prescription drug coverage may be sufficient, but not as broad or accessible as some FEHB plans.
FEHB plans may offer better provider access, especially outside the U.S.

In short, what looks like a cost-saving move may restrict your future flexibility.

FEHB + TRICARE: When Coordination Is Possible

Some retirees choose to keep both plans:

Before age 65: TRICARE can serve as secondary to FEHB or vice versa, depending on your care setting.
After age 65: Medicare becomes the primary payer. TRICARE For Life becomes secondary. FEHB becomes third in line—if you kept it.

This coordination means you could have minimal out-of-pocket costs, but you’ll be paying for multiple plans. If you can afford it, this route offers maximum flexibility. If not, prioritize the plan that best fits your health needs and provider network.

Where You Live Affects Your TRICARE Access

TRICARE is a federal program, but access to providers and facilities depends heavily on geography:

In some regions, TRICARE network providers are scarce.
Overseas retirees may face delays in claim processing or restricted access.
FEHB plans often have stronger national and international provider networks.

Location should factor into your decision. If you plan to retire abroad, FEHB might provide more consistent access.

You Can’t Enroll in TRICARE via Federal Retirement Alone

One major misconception among civilian retirees is that working for the Department of Defense or other military-aligned agencies gives you TRICARE access. This is incorrect.

Civilian service does not grant TRICARE.
Military retirees must qualify based on active or reserve military service.
Even if you buy back military time toward your FERS annuity, that alone does not trigger TRICARE eligibility.

This misunderstanding can lead to surprise gaps in coverage at retirement.

Dental and Vision Coverage Varies Widely

TRICARE and FEHB handle dental and vision care differently:

TRICARE offers limited dental and vision benefits to retirees unless you enroll in the separate FEDVIP program.
FEHB plans often bundle dental and vision benefits or offer them as low-cost add-ons.

If dental and vision coverage matters to you in retirement, compare the offerings carefully. Dropping FEHB could mean losing access to comprehensive dental or vision services unless you plan ahead.

Watch the Deadlines and Election Periods

TRICARE and FEHB both have strict timelines:

TRICARE For Life: Requires Medicare enrollment at age 65.
FEHB: Open Season occurs annually from November to December. Outside of this window, changes are only allowed with a qualifying life event.

Missing an enrollment deadline—especially for Medicare—can disrupt TRICARE For Life eligibility or delay benefits.

Special Case: Dual-Status Technicians

If you’re a dual-status military technician, your situation is even more complex. You may:

Accumulate military and civilian retirement eligibility.
Face TRICARE rules based on military service.
Still need to meet FEHB’s five-year rule.

Before retiring, verify your eligibility for both programs and run through several retirement scenarios. A misstep can cost you access to critical health coverage.

The Path Forward: Know Before You Drop

Choosing between FEHB and TRICARE isn’t simply about saving money. It’s about understanding:

Eligibility rules
Future access
Plan coordination with Medicare
Regional provider access

Many retirees maintain both until they reach Medicare eligibility, then reassess. Others keep FEHB just in case TRICARE becomes less viable. You need to balance affordability, flexibility, and future risk.

If you’re unsure, consult a licensed professional listed on this website to walk through your specific case before you retire. What you choose today could affect your healthcare for decades.