TRICARE for Life Costs: What Military Retirees Actually Pay
Understanding TRICARE for Life premiums, Medicare Part B requirements, and pharmacy costs for military retirees age 65+.
Key Takeaways
- 1TRICARE for Life has no premium - it's free for eligible retirees
- 2You MUST have Medicare Part B (2024: $174.70/month) to use TFL
- 3TFL acts as supplemental coverage after Medicare pays
- 4Pharmacy costs vary: mail order is cheapest
- 5Most services have zero out-of-pocket with Medicare + TFL
- 6Covers services worldwide, unlike Medicare alone
- 7Enrollment is automatic if you have Medicare A & B
TRICARE for Life Overview
TRICARE for Life (TFL) is healthcare coverage for military retirees, their families, and survivors who are entitled to Medicare Part A and enrolled in Part B.
- Available at age 65 when Medicare begins
- Covers military retirees and eligible family members
- Works with Medicare - Medicare pays first, TFL fills gaps
- No enrollment required - automatic if you have Medicare A & B
- Worldwide coverage (unlike Medicare which is US-only)
- Includes prescription drug coverage
Medicare Wrap-Around
TFL is secondary insurance that picks up where Medicare leaves off. For most services, you'll pay nothing out of pocket when using both.
Medicare Part B Requirement
To use TRICARE for Life, you MUST be enrolled in Medicare Part B - this is the main "cost" of TFL.
| Medicare Part | 2024 Cost | Required for TFL? |
|---|---|---|
| Part A (Hospital) | Free with 40 SS credits | Yes (entitled) |
| Part B (Medical) | $174.70/month base | Yes (enrolled) |
| Part D (Drug) | $0 - TFL covers drugs | No - don't need |
| IRMAA (high income) | Additional $69.90-$419.30 | If income >$103,000 |
Critical: Don't Skip Part B
If you don't enroll in Part B, you CANNOT use TRICARE for Life. You'd have no coverage except at military treatment facilities. Part B is required.
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TRICARE Pharmacy Costs
Prescription drug costs vary based on where you fill prescriptions.
| Pharmacy Type | Generic | Brand | Non-Formulary |
|---|---|---|---|
| Military Pharmacy | $0 | $0 | $0 |
| TRICARE Mail Order | $0 | $14 | $59 |
| Retail Network (30-day) | $14 | $33 | $68 |
| Retail Network (90-day) | $0 | $33 | $68 |
| Non-Network | 50% cost after deductible | 50% cost | 50% cost |
Express Scripts is TRICARE's pharmacy contractor. Costs effective 2024.
Use Military Pharmacy
If you live near a military installation, use the MTF pharmacy - all prescriptions are free. For maintenance medications, mail order is the next best option.
What TRICARE for Life Covers
TFL provides comprehensive coverage when combined with Medicare.
- **Doctor visits**: Medicare pays 80%, TFL pays 20%, you pay $0
- **Hospital stays**: Medicare deductible covered by TFL
- **Preventive care**: Fully covered at $0
- **Mental health**: Covered through Medicare + TFL
- **Overseas coverage**: TFL covers you worldwide (Medicare doesn't)
- **Skilled nursing**: TFL picks up after Medicare's 100 days
- **Durable medical equipment**: Fully covered
Overseas Travel
Unlike Medicare, TFL provides coverage when you travel internationally. For medical emergencies abroad, TFL works like TRICARE Standard.
Planning for Retirement Healthcare Costs
Even with excellent TFL coverage, healthcare costs can impact your retirement budget. Smart financial planning helps ensure you're prepared.
- Medicare Part B costs rise with income (IRMAA)
- Long-term care NOT covered by Medicare or TFL
- Military retirement pay provides base income
- TSP or other retirement accounts can supplement
- Gold IRA provides inflation protection for rising costs
- Augusta Precious Metals helps military retirees with IRA strategies
Frequently Asked Questions
1What if I miss my Medicare Part B enrollment window?
You'll face a 10% penalty for each year you were eligible but didn't enroll, and you can only sign up during annual enrollment. You'll also lose TFL coverage during the gap.
2Does my spouse get TRICARE for Life too?
Yes, if they're enrolled in Medicare Parts A and B. Eligible family members who had TRICARE before 65 transition to TFL when they get Medicare.
3Do I need Medicare Part D for prescriptions?
No. TRICARE's pharmacy benefit is as good or better than Part D, and it's included with TFL at no additional cost. Don't pay for Part D.
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