TRICARE in retirement has gotten complicated with all the Prime Retired premiums, Medicare Part B requirements, and dental and vision gaps flying around. As someone who forgot to budget for dental coverage in the first month of retirement and received a bill that immediately corrected that oversight, I learned exactly what changes at retirement and what costs to plan for. Today I will share it all with you.
TRICARE in Retirement: What Changes
Active duty TRICARE Prime is free — no premiums, no deductibles, minimal cost-sharing. Military retirement changes that. Retired servicemembers and their dependents move to TRICARE for Life (if Medicare-eligible) or TRICARE Prime Retired, both of which have annual premiums. As of 2026, TRICARE Prime Retired costs roughly $650-700/year per individual — still far below commercial insurance but not zero. Budget for TRICARE premiums from your first month of retirement, not after you receive the first bill.
Medicare Coordination at 65
At age 65, military retirees must enroll in Medicare Part B to keep TRICARE coverage. Medicare Part B has its own monthly premium — around $185/month in 2026, adjusted by income. At that point, TRICARE for Life becomes a secondary payer after Medicare, covering most of what Medicare doesn’t. The combination is excellent coverage, but the Medicare Part B premium is a real cost that many retirees underestimate when projecting retirement income needs at age 30 or 40.
That’s what makes the Medicare Part B requirement endearing to retirees who understand it in advance — the TFL/Medicare combination is genuinely good coverage, better than most Medicare Advantage plans for servicemembers who use VA and military facilities. But you have to enroll in Part B when first eligible or face permanent premium surcharges.
Dental and Vision Are Separate
Active duty dental is free through the military dental system. In retirement, dental coverage requires separate enrollment in the TRICARE Dental Program or a commercial plan. Vision similarly requires the TRICARE Retiree Vision Program or independent coverage. Neither is included in base TRICARE coverage. I’m apparently someone who forgot this until receiving a dental bill in the first month of retirement — plan for both premiums from day one.
The VA as a Supplement
Military retirees with VA disability ratings can use VA healthcare for service-connected conditions at no cost, and non-service-connected care at minimal copays depending on disability rating. For retirees with significant disability ratings, VA healthcare reduces out-of-pocket costs substantially. Use TRICARE for routine and family coverage, VA for conditions connected to service. Use both systems strategically rather than treating them as alternatives.
Build Healthcare Into Your Retirement Math
Probably should have led with the number: a retired couple from age 60 to 65, paying TRICARE Prime Retired premiums plus dental and vision plus copays, might spend $4,000-7,000/year in healthcare costs before Medicare eligibility. From 65 onward, add Medicare Part B premiums for each spouse. Factor this into your retirement income calculations — it’s not a minor line item, and it grows over time.
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