MOAA's TRICARE Guide: Transitioning Into Military Retirement

Editor's Note: This article by MOAA staff is part of MOAA's 2026-27 TRICARE Guide, brought to you by MOAA Insurance Plans, administered by Association Member Benefits Advisors (AMBA). A version of the guide appeared in the November 2026 issue of Military Officer magazine.

Retiring from military service means your health care options will change and might cost more. As you plan for retirement, take time to evaluate the health care options available to you, and consider both the costs and the benefits of each choice.

TRICARE beneficiaries in the U.S. and its territories may pick between TRICARE Prime and TRICARE Select. Military retirees and their dependents living outside the U.S. can use TRICARE Select Overseas.

TRICARE Prime is a managed care option, like a health maintenance organization (HMO), that typically uses military hospitals and clinics — and this means less out-of-pocket costs for beneficiaries.

TRICARE Select is self-managed, similar to a preferred provider organization (PPO). It offers the most freedom of choice but comes with higher costs.

Here's how to prepare for the transition into retired status:

Steps to Take

* Starting a few months before retiring from the military, compare the TRICARE plans available to choose what's best for you and your family.

* Spouses/dependents may sign up for a different plan than the military retiree; they would pay an individual rate for their plan versus the family rate.

* Check that your status is updated to "retired" on the Defense Enrollment Eligibility Reporting System (DEERS). You can do this online via milConnect or at a military ID office.

* When DEERS status reflects "retired," and within 90 days of your retirement date, enroll in your choice of TRICARE plan by contacting the specific regional contractor that manages your area program. Enroll online, by phone, or by U.S. mail.

Here are the programs to compare:

TRICARE Prime

TRICARE Prime is only available in certain stateside regions, called Prime service areas. Check your ZIP code for eligibility at the TRICARE online plan finder or call your regional contractor.

Retiree beneficiaries pay enrollment fees and network copays. The 2026 enrollment fee is adjusted for COLA. A primary care manager (PCM) provides most of your care in Prime service areas. Consider these options for health care:

* Military treatment facility (MTF). Ask the contractor to see whether an MTF within a 30-minute drive accepts new retirees and families. Check the status of your preferred MTF during an open season or qualifying life event. There are no copays if you are seen on a military installation.

* Civilian care. In many metropolitan areas, TRICARE contracts with medical providers to offer this. You will incur copays for civilian care.

* Specialty care. The role of your PCM is to manage your care and refer you to specialists when needed. While there is an option to see a specialist without a referral under the point-of-service option, it will result in much higher costs.

Uniformed Services Family Health Plan

The Uniformed Services Family Health Plan (USFHP) is a TRICARE Prime option available in six service areas in the U.S. This type of plan has its own providers and pharmacy networks. Beneficiaries get most care from an in-network primary care provider.

USFHP has the same out-of-pocket costs as TRICARE Prime but might offer discounts or services that TRICARE doesn't cover.

Enrollees can't seek care at MTFs or at military pharmacies or clinics unless it is an emergency.

[LEARN MORE: USFHP.com]

TRICARE Select is the most flexible TRICARE program. You don't need a PCM, and you can manage your own care. You can book an appointment with any TRICARE-authorized provider.

Referrals aren't required for most primary and specialty appointments, but some services might require pre-authorization from your regional contractor.

Retirees pay annual enrollment fees that are adjusted for COLA each calendar year.

TRICARE Select Overseas

Military retirees and their dependents living overseas can use TRICARE Select Overseas. The enrollment fee is the same as that of TRICARE Select. The 2026 fee is $186.96 for individuals and $375 for families.

Catastrophic Cap

The catastrophic cap is the most you pay out of pocket for covered services in a calendar year before TRICARE picks up additional covered costs.

TRICARE Prime and TRICARE Select enrollment fees count against the cap. In your retirement year, the amount accrued while on active duty applies toward the retirement catastrophic cap. The catastrophic cap for TRICARE Prime goes up from active duty to retiree status. The catastrophic cap for TRICARE Select is adjusted for COLA annually.

Pharmacy Benefit

Military retirees and dependents have a copay for prescriptions from commercial pharmacies or home delivery through Express Scripts. Prescriptions remain free at military pharmacies.

Terminal Leave

A retiring servicemember stays enrolled in TRICARE Prime at their last duty station until their retirement date. They can get care at any military hospital or clinic (pre-authorizations are required for nonurgent care), and at VA medical facilities with a referral/pre-authorization.

For routine medical care during terminal leave, or if you plan to leave the area of the last duty station at that time, consult with the TRICARE referral office at your MTF or call the Defense Health Agency-Great Lakes facility at (888) 647-6676.

Military families are covered by their TRICARE plan until date of retirement. Families enrolled in an MTF stay enrolled with their providers until the retirement date unless there is a reason to change, such as a PCS move.

Families can switch plans or stay with the current plan and enroll with a TRICARE Prime PCM at the new location.

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