Tricare for Life – Is It Really Free?

Military retirees, including reserve retirees over age 60, are familiar with the retiree Tricare drill. And when you hear “Tricare for Life” you may assume Tricare as you know it continues to death, but free.

Yes, and No

When you reach age 65, whatever Tricare plan you were on ends. You will be automatically moved to Tricare for Life. You will not pay any more Tricare annual fees.

But… In order to be covered under Tricare for Life, you must enroll in Medicare Part A and Medicare Part B. Part A (Hospital Insurance) coverage is free. Part B (Medical Insurance) is not. You will have to pay Part B premiums to Medicare. 

Your Medicare Part B premium is based on your annual income. For 2024, the standard Part B premium is $174.70 a month ($2,096.40 a year) per person. If your annual income is more than $103,000 (single) or $206,000 married filing jointly) you pay even more. 

Sounds Bad

By comparison Medicare premiums are much higher than the Tricare Prime Retired premiums ($363/year, individual). Though much lower than Tricare Retired Reserve ($7,023 a year, individual).

How Can This Be a Good Deal?

It’s unfair to only compare annual premiums. Your coverage will be more complete than Tricare alone because because Medicare covers some things Tricare doesn’t and visa versa.

Tricare for Life and Medicare together provide “wrap around coverage” through coordination of benefits (COB) rules. Medicare as the primary payer will pay it’s share of your medical bills first, and then Tricare will pay it’s share after that. 

For example, the catastrophic cap (total maximum co-pays and cost share per year) you could have to pay with other retiree (under age 65) Tricare plans is $3,000 to $4,399 a year. 

Under Tricare for Life, you pay those Medicare Part B premiums and that’s it. Usually there’s no additional costs. It’s very predictable.

If you receive care that is only covered by Medicare (like chiropractic) or only covered by Tricare (such as overseas care), you will be on the hook for some co-pays/cost share.

And you would need to pay entirely for a few things not covered by either Medicare or Tricare. Dental work and long term care are two examples.

Overall, Tricare for Life is really pretty amazing coverage. Just for reference, “regular civilians” 65 and older have a 20% cost share with Medicare Part B and no catastrophic cap (costs are unlimited). They also pay additional, much higher premiums and copays for drugs.

What if I use the Veterans Administration (VA)?

VA care can be a great option at any time. But if you are considering using only the VA system to avoid Tricare for Life and paying for Medicare Part B, proceed with extreme caution. 

A VA facility may not be available near you if you move or facilities close. VA healthcare is only available in the United States, so you wouldn’t be covered if you travel or move to another country. You are assigned to a priority group for VA care based on your service and disability. If you are in a lower priority group, you may be treated only on a space available basis, and you may have co-pays. And keep reading about penalties if you delay signing up for Medicare Part B.

Note: Also be careful when using Tricare for Life and Veterans Affairs health providers for non-service related care. Because VA providers are not allowed to bill Medicare, you can’t be reimbursed through Tricare for Life for any co-pay a VA provider charges. You’d have to pay for any VA expenses out of pocket. For most retired military these costs are likely low. Just know before you go.

What about my family?

Eligible family members stay on Tricare Standard or Prime until age 65 when they must sign up for Medicare Part A and B themselves and switch to Tricare for Life. So a service member and family members may be in different Tricare plans at the same time.

Don’t Delay Signing Up for Medicare Part B

The Medicare enrollment period starts 3 months before to your 65th birthday through 3 months after. So start when you are 64 years and 9 months old to be sure you don’t have a gap in coverage.

If you’re late, enrollment penalties are added to your monthly premium. The longer you wait to sign up, the higher the penalty. You’ll pay an extra 10% for each year you could have signed up for Part B, but didn’t. This is NOT just a one-time penalty. So if you wait 2 years to sign up, you will pay 20% higher Medicare premiums for the rest of you life!

You can delay enrolling in Part B if you or your spouse are working and covered by a workplace group health plan with 20 or more employees. In that case, you would need to enroll in Medicare Part B within 8 months of stopping work or losing your workplace health coverage, which ever is sooner in order to avoid penalty. 

What About the Rest of the Alphabet?

With Tricare for Life you do not need (and don’t pay for) a Medicare Advantage Plan (Part C) or a Drug Plan (Part D). Tricare for Life has you covered.

Where Can I Get More Details?

Download your Tricare for Life brochure here: https://tricare.mil/Publications/Handbooks/tricare_for_life

State-Level Veterans Benefits 

The US Department of Veterans Affairs has many benefits for military veterans. But did you know each state also has their own veterans affairs departments with additional benefits? Read on so you don’t miss out.

Where to Start?

State veterans affairs offices, also known as local veterans service offices, are government-run entities run by each state dedicated to helping veterans receive the benefits and services they deserve.

State-level veterans benefits vary from state to state. The benefits available to you also vary based on factors like your length and type of service, type of discharge, and your level of disability rating (if any).

The best place to start is your local state veterans affairs offices. Check out their website to see all they have to offer. Then dig in for benefits that interest you! 

This flyer from the federal VA has links to all 50 states and and the District of Columbia veterans services webpages.

https://www.va.gov/files/2020-11/state-benefits-quick-start-guide.pdf

What Veteran Benefits Do States Provide?

Here’s some categories that your state may offer, along with specific examples from individual states.

Education

State VA offices often offer educational benefits like tuition assistance, scholarships, and vocational training programs. These help you start a new career or enhance their existing skills. You can often find employment support through these offices, like job placement services, resume assistance, and training programs, too.

One of the most valuable state-level veteran benefits is help paying for college. At least 12 states offer tuition waivers (or something similar) for in-state universities to qualifying veterans and, in some cases, family members. 

The tuition waiver typically covers all or some of the in-state tuition and sometimes certain other fees associated with attending college. The states may have different names for the program, such as “Veterans Tuition Waiver,” “Veterans Fee Waiver,” or “Dependents’ Educational Assistance.”

Example: In Virginia, the Military Survivors and Dependents Education Program supports veterans who are Virginia residents and rated at least 90% permanently disabled due to military service. It provides a guaranteed waiver of all tuition and mandatory fees for eight semesters at a Virginia public college or university. An eligible veteran, their spouse, and their children ages 16-29 can use the benefit.

Example: Texas’s Hazelwood Act, provides eligible veterans in Texas up to 150 credit hours of tuition exemption at public universities and colleges in Texas. This benefit can also be transferred to eligible children in certain circumstances. Unlike Virginia, there is no requirement to have a VA disability. However, when you entered active duty, you must have designated Texas as your Home of Record, or enter military service in Texas, or were a Texas resident. You must also currently reside in Texas, served at least 180 days on active duty (excluding training) and had an honorable discharge or a general discharge under honorable conditions.

Tax Breaks

Many states offer veterans some kind of break on state taxes like property tax, income tax, and sales tax.

Example: Florida veterans with VA service-connected disability ratings of 10% or higher are eligible for a state property tax exemption of $5,000. You must file paperwork in the county showing proof of disability and VA rating. Surviving spouses who were married to the veteran for five years before the veteran’s death can also apply.

Example: Almost all states exempt all or part of military retiree pay from state income tax. Only California and the District of Columbia tax all military retiree pay as income.

Example: Oklahoma offers a sales tax exemption, including city and county sales tax, to eligible veterans with a 100% service connected disability rating. The tax exemption  is up to $25,000 for a veteran, and up to $1,000 for a Surviving Spouse. 

State Employment Preferences

Certain states offer veterans hiring preferences for state government jobs. This means veterans may receive additional points or priority in the hiring process when applying for state government positions.

Example: All New York State resident veterans with an honorable discharge from wartime service receive a 5-point employment preference over non-veterans in interviews and exams for state jobs, or 2.5 points for promotion exams. Veterans with a disability rating receive a total of 10 points, or 5 points for promotion exams.

Small Business Support

Several states have programs that offer financial assistance, training, and resources specifically for veteran-owned businesses, aiming to encourage entrepreneurship and economic growth within the veteran community.

Example: Illinois’ Veteran Entrepreneurship helps returning servicemembers and veterans start their own business and assists existing veteran-owned businesses expand their operation. This includes training seminars, educational sessions, and other related events.

Land Purchase

A few states offer veteran residents the opportunity to buy state land at a discount.

Example: Alaska’s Veterans Land Discount program gives Alaska veteran residents a 25% discount on the purchase of state residential/recreational land. A similar but separate program, Veterans Land Sale Preference, allows veterans to purchase land at a restricted sale at fair appraised market value before it is offered to the general public by auction. You can’t use both benefits at the same time. 

Hunting and Fishing Licenses

Some states offer veterans free or reduced price hunting and fishing licenses. 

Example: Colorado offers a free lifetime combination small-game hunting and fishing license for a resident veteran with a permanent service-connected disability of 60% or more.

State Parks Passes

Most states offer veterans free or reduced prices for state park passes and/or camping fees and other use fees. 

Example: Arizona residents who are retired military or service disabled veterans receive 50% off day-use entrance to Arizona State Parks. Arizona residents with a 100% VA disability rating are entitled to a free day-use pass.

License Plates

Many states issue special license plates for veterans. These plates may indicate you are a disabled veteran, your branch of service, or display other symbols representing your service.

Example: Louisiana offers 47 license plate designs that honor veterans and eligible family members. These plates are issued for the same fee as a regular license plate.

Veteran’s Treatment Court

The number of states with Veteran Treatment Courts has grown rapidly. These courts offers alternatives to case proceedings for veterans. They try to address underlying problems which contribute to criminal activity or other court involvement. They promote education and job placement, and access to medical, mental health, dental, homelessness, unemployment, family counseling, and employment services.

Example: California has 33 veteran’s treatment courts throughout the state.

Veterans Homes

Every state operates at least one veterans home providing long-term care services to eligible veterans. These homes offer skilled nursing care, assisted living, and care for veterans who need specialized support in their daily lives. 

Example: North Carolina operates four state veterans nursing homes. Applicants must be a veteran who served on active duty and was discharged under honorable conditions. The veteran must be a resident of North Carolina for two years immediately prior to application. And must be disabled and in need of nursing home care with physician orders. Veterans with a 70% disability rating or higher have most of their costs paid by the VA.

Veterans Cemeteries

Most states maintain their own veterans cemeteries, providing a final resting place for veterans and their eligible family members.

Example: Idaho has two state veterans cemeteries where any veteran may be buried (do not have to be a resident of Idaho). Most veterans are eligible for a VA burial plot allowance that covers the cost of internment, a grave marker, use of a committal shelter, and perpetual care of the gravesite. Spouses can share plot and grave marker with the veteran, but will need to pay their internment fee.

Don’t Miss Out!

You won’t receive these benefits automatically. Check with your local veterans services office or the official website of your state’s Veterans Affairs office for the details on specific benefits you may be eligible for. Then apply!

And remember, every state is different. So it’s on you to look for what a particular state has to offer and apply. Benefits available to you may vary based on factors like your length of service, type of discharge, and level of disability rating (if any), so check the details. 

Here’s the VA link again that has the websites for all 50 states’ veteran services.

https://www.va.gov/files/2020-11/state-benefits-quick-start-guide.pdf

If you need help navigating state-level veterans benefits or federal VA benefits, get in touch with one of our military planners.  MFAA-planners excel at figuring out how to maximize your benefits.  You can find the list of MFAA planners here.