Tricare Prime Cost for Retired Military Members: Understanding the Annual and Monthly Premiums

Tricare is a vital health insurance program for active, reserves, and retired military personnel and their families. Understanding the cost of Tricare Prime is crucial for retired military members to plan their healthcare budget. This article explores the cost of Tricare Prime for retired military members, highlighting the differences between groups and the implications for beneficiaries.

Overview of Tricare Prime Costs

Tricare offers various plans designed to meet the needs of military members and their dependents. Tricare Prime, also known as Tricare for Life for certain beneficiaries, is particularly important for retired military personnel who require long-term healthcare. The cost of Tricare Prime can vary depending on the group in which the military sponsor falls.

Group A vs. Group B

The annual premium and associated costs for beneficiaries depend on the group number of the military sponsor. Group A and Group B represent different cost structures that can significantly impact the out-of-pocket expenses for beneficiaries.

Annual Premiums and Other Costs

For Group A sponsors, the annual premium is:

$25 for individuals $50 for families

These premiums can be paid on a monthly basis with several options for payment, such as a monthly allotment from retirement pay.

For Group B sponsors, the annual premium is:

$240 for individuals $480 for families

These premiums also include other costs, such as specialized care and prescription drug coverage, which can vary based on the individual's needs.

Special Considerations for Retired Military Members

Retired military members often have unique healthcare needs, and understanding how Tricare Prime works for this demographic is essential. According to TRICARE's 2020 Cost Sheet, the cost for Tricare Prime for individuals is:

$240 per year Slightly more when paid in installments

The cost for a family is:

$480 per year Slightly more when paid in installments

Transition to Tricare for Life

Once a retired military member turns 65 and becomes eligible for Medicare, they may transition to Tricare for Life, which includes no premium and covers primary medical insurance.

Tricare for Life is particularly beneficial for disabled military members who may have significant healthcare needs. For instance, a disabled military member who retired in 2014 and transitioned to Tricare for Life saw their monthly Tricare Prime premium reduced to $23.16, as reported in their latest Retiree Account Statement from June 2020. Prior to this, they were paying approximately $140 per month from their Social Security Disability payments for Medicare Part B coverage, which has only marginally increased since.

Dental Coverage

It is important to note that Tricare Prime and Tricare for Life do not include dental insurance. Military members considering Tricare Prime should ensure they have adequate dental coverage through other means, such as Medicaid or private dental plans.

Adjustments Based on Cost of Living

Tricare Prime and Tricare for Life premiums are adjusted every few years based on cost of living increases. This ensures that the program remains relevant and accessible to military members and their dependents.

Conclusion

Understanding Tricare Prime costs is crucial for retired military members to plan their healthcare budget effectively. The cost structures for Tricare Prime, both in Group A and Group B, can vary significantly, and it is essential to be aware of these differences. Transitioning to Tricare for Life upon turning 65 adds further benefits, but dental coverage must be considered separately.

Key Points:

Tricare Prime costs differ based on the group number of the military sponsor. Retired military members, especially those who are disabled, can see significant cost reductions when transitioning to Tricare for Life. Tricare Prime and Tricare for Life do not include dental insurance. Premiums are adjusted periodically to account for cost of living increases.

By staying informed about these costs and options, retired military members can make the most informed decisions about their healthcare.