TRICARE Versus FEHB: Where Military Retirees Frequently Get Caught in Between Complicated Coverage Choices

Key Takeaways

• Military retirees often find themselves caught between TRICARE and FEHB, each offering valuable but sometimes overlapping benefits, requiring careful evaluation of long-term needs.

• Deciding between TRICARE and FEHB involves more than just cost considerations; eligibility rules, coordination with Medicare, and survivor coverage all influence the best choice.

Why Military Retirees Face Complex Coverage Choices

If you are a military retiree who also qualifies for the Federal Employees Health Benefits (FEHB) Program, you occupy a unique space in the retirement benefits system. Unlike most government employees who choose only FEHB, you are also entitled to TRICARE, a health program for military retirees and their families. This dual eligibility gives you options but can also create confusion. You may wonder if you need both programs, if one is sufficient, or how Medicare enrollment at age 65 affects these choices.

Understanding TRICARE in Retirement

TRICARE serves as a cornerstone of healthcare for military retirees. In 2025, TRICARE includes several plan types, but at its core, it provides access to a nationwide provider network and lower out-of-pocket costs than many other programs. Key elements include:

• Eligibility: Available if you served long enough to qualify for military retirement and are listed in the Defense Enrollment Eligibility Reporting System (DEERS).

• Coverage: Includes inpatient and outpatient care, preventive services, prescriptions, and specialty care.

• Costs: You are responsible for enrollment fees, deductibles, and cost-sharing, but these are generally lower than civilian plans.

• Integration with Medicare: At age 65, TRICARE For Life (TFL) becomes your secondary coverage when you enroll in Medicare Part A and Part B.

The main strength of TRICARE is its affordability, particularly when paired with Medicare in later retirement years.

Understanding FEHB in Retirement

The Federal Employees Health Benefits (FEHB) Program is the primary coverage for most government employees. As a retiree, you can continue your FEHB plan into retirement if you were enrolled for at least five years prior to retirement. Highlights include:

• Flexibility: Offers a wide variety of plan types, including fee-for-service, HMO, and consumer-driven options.

• Continuity: Provides consistent benefits that carry into retirement as long as premiums are paid.

• Coordination with Medicare: At 65, FEHB plans can coordinate with Medicare Parts A and B, reducing your out-of-pocket expenses.

• Survivor Benefits: Offers continuation for family members if you elect survivor annuity coverage.

FEHB tends to provide broader plan choices and may suit retirees who want access to certain networks or prefer comprehensive coverage flexibility.

Comparing TRICARE and FEHB Side by Side

When weighing TRICARE against FEHB, the comparison is not just about costs but about coverage priorities and retirement strategy. Consider:

1. Eligibility Rules: You cannot lose TRICARE eligibility if you remain enrolled in DEERS, but FEHB requires active enrollment and premium payments.

2. Premium Costs: TRICARE generally requires lower enrollment fees than FEHB premiums. However, FEHB offers government contributions toward costs.

3. Medicare Coordination: With TRICARE, Medicare becomes the primary payer at 65, with TRICARE For Life covering remaining costs. With FEHB, you decide whether to keep both Medicare and FEHB active, weighing cost against value.

4. Prescription Drugs: TRICARE integrates with Medicare Part D, while FEHB plans already include prescription coverage.

5. Survivor Coverage: FEHB provides a more formal structure for dependents, whereas TRICARE relies on ongoing eligibility tied to military retiree status.

Key Questions to Ask Yourself Before Deciding

• Will you need specialized care that TRICARE may limit but FEHB offers more easily?

• Are you planning to live in areas where TRICARE providers are limited?

• How do you want your coverage to interact with Medicare after age 65?

• Do you want to maintain coverage options for your spouse or family members who may not qualify for TRICARE?

Your answers help you weigh which program better supports your long-term needs.

How Medicare Changes the Equation at 65

At age 65, your healthcare choices shift. Medicare Part A and Part B enrollment is mandatory to keep TRICARE For Life. Once you enroll, Medicare pays first, and TRICARE pays second. This often eliminates the need for FEHB, though some retirees keep both for additional coverage.

In contrast, FEHB does not require Medicare enrollment. You may choose to keep FEHB only, pair it with Medicare Part A alone, or carry both Medicare A and B. This flexibility can be appealing, but it comes with higher costs than TRICARE For Life.

Financial Implications Across Retirement

The financial outcomes differ depending on whether you lean on TRICARE, FEHB, or both:

• Using TRICARE Only: Typically lower annual costs, especially after Medicare enrollment at 65.

• Using FEHB Only: Higher premiums but access to a wide range of providers and coverage designs.

• Using Both: Provides maximum flexibility but at the highest personal cost, since you must pay FEHB premiums while maintaining TRICARE eligibility.

A long-term view is necessary. What seems affordable at age 60 may feel different at age 80 when healthcare use typically rises.

Survivor Considerations That Are Easy to Overlook

If you pass away, your spouse’s healthcare options depend on what you carried into retirement. With TRICARE, your spouse keeps eligibility if they qualify as a dependent. With FEHB, your spouse only continues coverage if you elected a survivor benefit with your retirement annuity. Failing to account for this difference can leave family members without expected coverage.

When Keeping Both Programs Might Make Sense

Some retirees choose to maintain both TRICARE and FEHB:

• To ensure access to certain medical providers not easily available under TRICARE

• To allow dependents additional coverage options

• To act as a bridge until Medicare enrollment begins

Although costly, this strategy can create peace of mind for retirees who do not want to limit their choices.

Steps to Take Before Making a Decision

1. Review your DEERS information to confirm TRICARE eligibility.

2. Look at your FEHB enrollment history to ensure you qualify to carry it into retirement.

3. Evaluate how your coverage will interact with Medicare once you turn 65.

4. Assess potential survivor needs to avoid leaving family members without protection.

5. Compare projected costs for both options over the next 20 years, not just the immediate premiums.

Avoiding Mistakes That Create Long-Term Problems

• Do not assume that because TRICARE costs less, it is always the better option. Provider access may be limited in certain areas.

• Do not drop FEHB without considering how it affects survivor coverage for your spouse or children.

• Do not ignore the Medicare enrollment requirement for TRICARE For Life.

• Do not forget to compare how prescription coverage differs between programs.

Each of these mistakes can cause financial strain or gaps in coverage that are difficult to fix later.

Making the Most of Your Coverage Options

Ultimately, your decision should balance affordability, flexibility, and family security. Many retirees begin retirement with both FEHB and TRICARE, then reassess at 65 when Medicare enrollment changes the coverage landscape. This gradual approach helps you avoid surprises and gives you time to confirm whether you truly need both programs long-term.

Building a Confident Healthcare Plan for Retirement

TRICARE and FEHB both offer valuable benefits, but military retirees like you must carefully weigh how these programs overlap, complement, or duplicate each other. Your choice should reflect not only current needs but also how your healthcare requirements may evolve decades into retirement. If you are uncertain, reaching out for professional advice can help ensure you protect both yourself and your family.

Take the next step and connect with a licensed agent listed on this website who can walk you through your TRICARE and FEHB options in detail, helping you choose the best path for your retirement healthcare.