Healthcare is one of the most valuable benefits of military retirement. While your civilian counterparts may pay $20,000+ per year for family health insurance, TRICARE gives you comprehensive coverage for a fraction of that cost.
But navigating TRICARE as a retiree can be confusing. Prime or Select? What's the difference between Group A and Group B? What happens at 65? This guide breaks down everything you need to know about TRICARE in retirement for 2026.
TRICARE Retiree Options at a Glance
Understanding Your TRICARE Group: A vs B
Before diving into plans, you need to know which TRICARE "group" you belong to. This determines your costs and is based on when the sponsor (the service member) first entered military service.
Which Group Are You?
- Group A: Sponsor entered service BEFORE January 1, 2018
- Group B: Sponsor entered service ON or AFTER January 1, 2018
Why it matters: Group A retirees pay lower TRICARE Select enrollment fees but higher copays. Group B retirees pay higher enrollment fees but lower copays.
TRICARE Prime vs Select: Which Should You Choose?
As a military retiree, you have two main TRICARE options (until age 65). Here's how they compare:
TRICARE Prime
- Type: HMO-style managed care
- Network: Must use Prime network
- Referrals: Required for specialists
- PCM: Assigned primary care manager
- Best for: Those near military facilities who want lower costs
TRICARE Select
- Type: PPO-style fee-for-service
- Network: Any TRICARE-authorized provider
- Referrals: Not required
- PCM: No assigned manager
- Best for: Those wanting flexibility in provider choice
2026 TRICARE Costs for Retirees
TRICARE costs increase each year based on the retiree cost-of-living adjustment (COLA). For 2026, most costs increased 2-3% with the 2.8% COLA.
Annual Enrollment Fees (2026)
| Plan | Coverage | Group A | Group B |
|---|---|---|---|
| TRICARE Prime | Individual | $462.96 | $462.96 |
| TRICARE Prime | Family | $927.00 | $927.00 |
| TRICARE Select | Individual | $381.96 | $594.96 |
| TRICARE Select | Family | $763.92 | $1,191.00 |
Note: These are annual fees. Monthly cost is approximately 1/12 of annual (e.g., $77.25/month for Prime family).
Copayments Comparison (2026)
| Service | Prime | Select (Group A) | Select (Group B) |
|---|---|---|---|
| Primary Care Visit | $26 | $38 | $33 |
| Specialty Care Visit | $36 | $48 | $43 |
| Urgent Care | $36 | $48 | $43 |
| Emergency Room | $90 | $120 | $105 |
| Inpatient (per day) | $25 | 25% cost-share | 20% cost-share |
Catastrophic Caps (2026)
TRICARE limits your annual out-of-pocket expenses with catastrophic caps:
| Plan | Group A | Group B |
|---|---|---|
| TRICARE Prime | $4,000 | $4,000 |
| TRICARE Select | $4,381 | $4,635 |
The TRICARE Value
Compare to civilian healthcare: The average employer-sponsored family health plan costs $24,000+/year (with employers paying ~$17,000 and employees paying ~$7,000). TRICARE family coverage at $927-$1,191/year is an incredible benefit worth $6,000-$7,000+ annually in savings.
TRICARE For Life: Healthcare at Age 65
When you turn 65, your TRICARE coverage transitions to TRICARE For Life (TFL). This is automatic Medicare-wraparound coverage that pays most out-of-pocket costs that Medicare doesn't cover.
Critical: You MUST Enroll in Medicare
If you don't enroll in Medicare Part A and Part B by age 65, your TRICARE benefits END.
Sign up for Medicare 3-4 months BEFORE your 65th birthday to ensure seamless transition to TRICARE For Life.
How TRICARE For Life Works
- Medicare pays first as your primary insurance
- TRICARE For Life pays second, covering most remaining costs
- You pay little to nothing for most covered services
- No TFL enrollment fee - coverage is automatic
- No need for Medicare Part D - TRICARE pharmacy benefit is better
2026 Medicare Costs (Required for TFL)
| Medicare Part | 2026 Cost | Notes |
|---|---|---|
| Part A (Hospital) | $0 (most people) | Free if you/spouse paid Medicare taxes 40+ quarters |
| Part B (Medical) | $202.90/month | Standard premium; higher for high earners |
| Part D (Prescriptions) | Not needed | TRICARE pharmacy benefit is superior |
Annual Medicare cost: $2,434.80/year for Part B premium (individual). This is your main healthcare expense at 65+, but TRICARE For Life covers nearly everything else.
TRICARE For Life Timeline
4 months before 65th birthday
Sign up for Medicare Part A and Part B through Social Security (ssa.gov or local office)
65th birthday month
Medicare coverage begins; TRICARE Prime/Select ends automatically
First day of Medicare coverage
TRICARE For Life begins automatically - no enrollment needed
Dental and Vision: FEDVIP Coverage
Unlike active-duty families, military retirees don't have automatic dental coverage. Instead, you can purchase dental and vision insurance through the Federal Employees Dental and Vision Insurance Program (FEDVIP).
2026 FEDVIP Dental Premiums
FEDVIP offers 11 dental plans with varying premiums. Here's a sample range for 2026:
| Plan Type | Self Only (Monthly) | Self + Family (Monthly) |
|---|---|---|
| Standard Plans | $16 - $35 | $32 - $67 |
| High Plans | $24 - $60 | $47 - $118 |
2026 FEDVIP Vision Premiums
| Plan Type | Self Only (Monthly) | Self + Family (Monthly) |
|---|---|---|
| Standard Plans | $7 - $9 | $14 - $16 |
| High Plans | $12 - $15 | $24 - $29 |
FEDVIP Enrollment
Open season for FEDVIP is typically mid-November to mid-December each year. Enroll or make changes at benefeds.gov. Coverage begins January 1.
Decision Framework: Which TRICARE Plan Is Right for You?
Choose TRICARE Prime if:
- You live near a military treatment facility (MTF)
- You want the lowest out-of-pocket costs
- You don't mind getting referrals for specialists
- You're okay with an assigned primary care manager
- You prefer predictable, lower copays
Choose TRICARE Select if:
- You want flexibility to see any provider
- You don't live near an MTF
- You have established relationships with civilian doctors
- You don't want to deal with referrals
- You're willing to pay slightly higher costs for freedom of choice
Pharmacy Benefits
TRICARE's pharmacy benefit is one of the best in the nation. Here are 2026 copays:
| Pharmacy Type | Generic | Brand | Non-Formulary |
|---|---|---|---|
| Military Pharmacy | $0 | $0 | $0 |
| Mail Order (90-day) | $12 | $34 | $68 |
| Retail (30-day) | $14 | $38 | $68 |
Pro Tip: Use Military Pharmacies
Prescriptions at military treatment facility pharmacies are completely free. If you live near a base, this alone can save hundreds or thousands per year on medications.
Common Questions About TRICARE in Retirement
Can I switch between Prime and Select?
Yes. You can change plans during TRICARE Open Season (typically mid-November to mid-December) or after a Qualifying Life Event (move, marriage, birth, etc.).
What if I'm a Gray Area retiree (Guard/Reserve)?
Gray Area retirees (under 60, not yet receiving retired pay) can purchase TRICARE Retired Reserve at higher premiums: $645.90/month individual or $1,548.30/month family in 2026.
Does TRICARE cover my adult children?
Children are covered until age 21 (or 23 if full-time students). After that, they may purchase TRICARE Young Adult: $794/month for Prime or $363/month for Select in 2026.
What if I have VA healthcare too?
You can use both! VA healthcare is separate from TRICARE. Many retirees use VA for service-connected conditions (free) and TRICARE for everything else. At 65, you can use VA, Medicare, and TRICARE For Life together.
Do I need to enroll in TRICARE after retirement?
Yes. Unlike active duty, retirees must actively enroll in TRICARE Prime or Select. Enroll through milConnect (milconnect.dmdc.osd.mil) or by calling your regional contractor.
The Bottom Line
TRICARE is one of the most valuable benefits of military retirement. Whether you choose Prime or Select, you're getting healthcare coverage worth thousands of dollars per year compared to civilian alternatives.
Key takeaways:
- Know your group (A or B) - it affects your costs
- Prime = lower costs, less flexibility (HMO-style)
- Select = higher costs, more freedom (PPO-style)
- At 65, you MUST enroll in Medicare to keep TRICARE benefits
- Use military pharmacies for free prescriptions
- Don't forget dental/vision through FEDVIP
Calculate Your Retirement Income
Factor in your TRICARE savings when planning retirement. See what civilian salary you'd need to match your military benefits.
Use the Free Calculator →