What Is TRICARE For Life?

By: Marc Lowe CFP

I met up with a Navy veteran at my favorite local coffee shop (if you know me, you know which one; yes, it's on Bank Street in New London), and we began talking about his plan for his boat that he loves. After a couple of sips from a large iced coffee, he paused and mentioned that his wife was worried about what she was reading about the potential of Social Security Administration running out of money and how they may need to cut veterans' benefits to keep it open. He said he was most worried they would cut veterans' benefits like TRICARE for Life ( TFL).

TRICARE For Life (TFL) is a Medicare wraparound health insurance program for military retirees, eligible family members, and certain survivors who are entitled to Medicare Part A and enrolled in Medicare Part B.

Once you become eligible, Medicare pays first for Medicare-covered services and TRICARE For Life generally pays second, often covering many of the remaining out-of-pocket costs. TRICARE for life essentially picks up the tab on those medicare deductibles you would be responsible for.

Although no one knows what Congress may do, I thought it was important to mention that TRICARE For Life is part of the mandatory spending of the congressional budget. This makes it incredibly hard for congress to cut from the budget.

For many military retirees, TFL results in extremely comprehensive healthcare coverage with relatively low out-of-pocket expenses. I don't know many politicians that would get re-elected after passing something that impact so many veterans negatively.

Ultimately, I decided to create this article for my friend at the coffeeshop. A deep dive into TRICARE for life and how it works.

Table of Contents

• What Is TRICARE For Life?

• Who Is Eligible?

• How Does TRICARE For Life Work?

• What Does It Cover?

• What Doesn't It Cover?

• How Much Does TRICARE For Life Cost?

• Do You Need Medicare Part B?

• How TRICARE For Life Works with Medicare

• Overseas Coverage

• TRICARE For Life vs Original Medicare

• Common Mistakes to Avoid

• Frequently Asked Questions

Who Is Eligible for TRICARE For Life?

You generally qualify if you are:

• A military retiree

• The spouse of a military retiree

• An eligible surviving spouse

• Certain Medal of Honor recipients and family members

• Other eligible beneficiaries

You must also:

• Be entitled to Medicare Part A

• Be enrolled in Medicare Part B

• Remain listed in DEERS (Defense Enrollment Eligibility Reporting System)

Without Medicare Part B, you generally lose TRICARE For Life eligibility.

How Does TRICARE For Life Work?

Think of TRICARE For Life as secondary insurance.

Step 1

You receive healthcare from a Medicare provider.

↓

Step 2

Medicare processes the claim first.

↓

Step 3

The remaining balance automatically goes to TRICARE.

↓

Step 4

TRICARE typically pays eligible remaining costs.

For Medicare-covered services, beneficiaries often owe little or nothing.

What Does TRICARE For Life Cover?

TRICARE For Life generally covers:

Hospital Care

• Inpatient hospitalization

• Skilled nursing facilities

• Hospice care

• Rehabilitation

Medical Services

• Doctor visits

• Specialists

• Preventive care

• Diagnostic testing

• Surgery

Prescription Drugs

TRICARE Pharmacy Program includes:

• Military pharmacies

• Home delivery

• Retail pharmacies

• Network pharmacies

Preventive Services

• Annual wellness visits

• Screenings

• Vaccinations

• Cancer screenings

What Doesn't TRICARE For Life Cover?

Some services may not be covered, including:

• Routine long-term custodial care

• Most dental care

• Routine vision exams

• Hearing aids (with limited exceptions)

• Cosmetic procedures

• Services not medically necessary

Separate dental and vision plans are available through the Federal Employees Dental and Vision Insurance Program (FEDVIP).

How Much Does TRICARE For Life Cost?

One of the biggest advantages is that TRICARE For Life has no enrollment fee.

However, beneficiaries are responsible for:

• Medicare Part B premiums

• Prescription drug copays (when applicable)

• Certain services not covered by Medicare or TRICARE

For Medicare-covered services, many retirees have little or no out-of-pocket cost after

Medicare and TRICARE process the claim.

Do You Need Medicare Part B?

Yes.

This is one of the most important eligibility requirements.

To keep TRICARE For Life, you generally must:

• Enroll in Medicare Part A

• Pay Medicare Part B premiums

• Keep Part B active

If you cancel Medicare Part B, TRICARE For Life benefits are generally suspended until Part B is restored.

Does TRICARE For Life Pay Medicare Part B Premiums?

No.

Many retirees mistakenly believe TRICARE covers Medicare Part B premiums.

It does not.

You are responsible for paying your Medicare Part B monthly premium.

However, after Medicare processes eligible claims, TRICARE often covers many of the remaining expenses.

This distinction is important when planning retirement healthcare costs.

How Claims Are Processed

Medicare-Covered Service

1. Provider bills Medicare

2. Medicare pays its portion

3. Claim automatically forwards to TRICARE

4. TRICARE pays eligible remaining balance

Usually no paperwork is required.

Service Covered Only by TRICARE

The provider may bill TRICARE directly.

Normal TRICARE cost-sharing rules apply.

Service Covered by Neither

The beneficiary is responsible for the full cost.

TRICARE For Life Overseas

Outside the United States:

• Medicare generally does not provide coverage.

• TRICARE becomes the primary payer for covered services.

• Beneficiaries may need to pay upfront and submit claims for reimbursement.

Overseas rules differ from those within the U.S., so it's important to understand how claims are handled before traveling or relocating abroad.

TRICARE For Life vs Original Medicare

Feature	Original Medicare	TRICARE For Life
Primary Insurance	Medicare	Medicare
Secondary Coverage	None	TRICARE
Enrollment Fee	None	None
Part B Required	Yes	Yes
Out-of-Pocket Costs	Higher	Often Lower
Prescription Coverage	Separate Part D optional	TRICARE Pharmacy

Common TRICARE For Life Mistakes

1. Waiting Too Long to Enroll in Medicare Part B

Missing your enrollment window can result in:

• Permanent premium penalties

• Loss of TRICARE For Life eligibility

2. Not Updating DEERS

Incorrect information can interrupt benefits.

Always keep:

• Address

• Marital status

• Family information

up to date.

3. Assuming Everything Is Covered

Even excellent coverage has limitations.

Review:

• Dental

• Vision

• Hearing

• Long-term care

Before retirement.

4. Ignoring Medicare Premium Planning

Higher-income retirees may pay Income-Related Monthly Adjustment Amount (IRMAA) surcharges.

Large Roth conversions, capital gains, or other taxable income can increase Medicare Part B premiums—even if you have TRICARE For Life. Because TFL does not pay your Part B premium, tax planning becomes an important part of retirement planning.

Retirement Planning Considerations

Healthcare costs are only one piece of retirement.

Military retirees should coordinate:

• Social Security claiming

• Pension income

• Roth conversion strategies

• Medicare planning

• Required Minimum Distributions (RMDs)

• Investment withdrawals

• Tax planning

These decisions often affect one another and can significantly impact lifetime retirement income.

Frequently Asked Questions

Is TRICARE For Life free?

There is no enrollment fee, but you must pay Medicare Part B premiums.

Does everyone with Medicare qualify?

No.

You must also be an eligible military beneficiary.

Do I need Medicare Part D?

Usually not.

TRICARE Pharmacy benefits are generally considered creditable prescription drug coverage.

Does TRICARE For Life cover spouses?

Yes, if the spouse meets eligibility requirements and is enrolled in Medicare Part A and Part B.

Can I use any doctor?

You can generally see any provider who accepts Medicare.

Does TRICARE For Life replace Medicare?

No.

Medicare remains your primary insurance.

TRICARE acts as secondary coverage.

Does TRICARE For Life cover long-term care?

Generally no.

Custodial long-term care is not covered, making long-term care planning an important consideration for retirees.

Does TRICARE For Life cover care overseas?

Key Takeaways

• TRICARE For Life supplements Medicare for eligible military retirees and family members.

• Medicare pays first, and TRICARE generally pays second.

• Enrollment in Medicare Part B is required to maintain TFL eligibility.

• There is no enrollment fee for TFL, but Medicare Part B premiums remain your responsibility.

• TFL can significantly reduce out-of-pocket healthcare costs, but it does not cover every service.

• Coordinating healthcare, taxes, and retirement income strategies can help maximize the value of your military benefits.

About the Author

Marc Lowe, CFP® is a fee-only fiduciary advisor based in Waterford, CT, helping small business owners & families make smarter financial decisions.

CEO & Founder of In The Money Retirement Planning

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