TRICARE and Medicare Coverage: How the Two Work Together
Both agents and military retirees need to understand how TRICARE and Medicare coverage works in tandem. While both programs provide robust healthcare coverage, the rules around enrollment, coordination of benefits, and plan options may be confusing.
In this post, we’ll break down what TRICARE is, how it works with Medicare, key eligibility requirements, and what agents and beneficiaries need to know to ensure continuous and cost-effective coverage.
What Is TRICARE
TRICARE is the health care program for:
- Uniformed service members (active duty and retired)
- Their families
- National Guard/Reserve members
- Survivors and some former spouses
Administered by the Defense Health Agency (DHA), TRICARE provides coverage similar to private insurance plans and includes prescription drug benefits.
When a TRICARE Beneficiary Becomes Medicare-Eligible
When a TRICARE beneficiary turns 65 (or qualifies for Medicare earlier due to disability), they typically must enroll in Medicare Part A and Part B to maintain their TRICARE coverage.
Once they enroll in Medicare, TRICARE becomes TRICARE for Life (TFL).
What Is TRICARE For Life (TFL)
TRICARE for Life is the coverage that kicks in after a beneficiary becomes eligible for Medicare and enrolls in both Part A and Part B. TFL acts as a secondary payer to Medicare. Here’s how it works:
- Medicare pays first (as the primary insurance)
- TFL pays second, covering most or all of the remaining costs
- Out-of-pocket costs are minimal or nonexistent for covered services
Important: If a TRICARE beneficiary does not enroll in Medicare Part B, they will lose TRICARE coverage, unless they are an active-duty service member or family member of one.
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Coverage Details: Medicare TRICARE for Life
Service Medicare Pays TFL Pays Beneficiary Pays Doctor visits 80% Remaining 20% $0 (in most cases) Hospital stay Medicare-approved TFL covers deductible $0 Prescription drugs N/A TFL (through Express Scripts) Varies (copays) Services not covered by Medicare (e.g., overseas) N/A TFL may pay May vary
Can TFL Beneficiaries Enroll in Medicare Advantage
Technically, yes; TFL beneficiaries can enroll in a Medicare Advantage (MA) plan, but this often creates coverage conflicts and doesn’t offer cost savings.
Agents should caution beneficiaries:
- TFL does not coordinate well with MA plans.
- Some services covered by TFL may be denied if the MA plan doesn’t approve them.
- MA plans may interfere with how TFL pays claims.
Most beneficiaries are better off staying with Original Medicare + TRICARE for Life.
Do TFL Beneficiaries Need Medicare Part D
No, TFL includes a robust pharmacy benefit through Express Scripts. Enrolling in a separate Medicare Part D plan may result in:
- Loss of TRICARE pharmacy coverage
- Unnecessary monthly premiums
- Coordination issues
Agents: When working with TRICARE beneficiaries, always ask if they use the Express Scripts program before discussing Part D options.
Key Points for Medicare Agents
- Do not sell Medicare Advantage or Part D plans to TFL beneficiaries without reviewing the consequences.
- Always verify TRICARE status before recommending plan changes.
- Turning 65 is a triggering event that requires Medicare Part A & B enrollment to keep TRICARE.
- TFL works best with Original Medicare not Advantage plans.
- Help clients plan for premium costs; Medicare Part B still has a monthly premium, even with TFL.
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Key Takeaways for Beneficiaries
- Enroll in Medicare Part A and B when eligible to keep your TRICARE benefits.
- TRICARE for Life + Medicare offers comprehensive, low-cost healthcare.
- Avoid Medicare Advantage or Part D unless you understand the impact on your TRICARE benefits.
- You do not need Medigap; TFL acts as your Medicare supplement.
For military retirees and their families, TRICARE for Life is a valuable benefit that pairs seamlessly with Medicare; when used correctly. As an agent, your role is to educate and protect beneficiaries from making decisions that could disrupt their healthcare.
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Whether you’re a veteran trying to understand your coverage or an agent assisting a retired service member, remember: when in doubt, stick with Original Medicare + TRICARE for Life.
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