TRICARE vs Civilian Health Plan: True Annual Cost Comparison
Example: Status (1 = Active duty, 0 = Retired): 1 · Civilian plan monthly premium (employee share): 450 $ · Civilian plan annual deductible: 1500 $ · Civilian plan out-of-pocket maximum: 6000 $ · TRICARE monthly premium (retirees only; 0 if active): 0 $ · TRICARE annual deductible: 150 $ · Expected annual medical services cost (before insurance): 5000 $
| TRICARE saves you annually vs civilian plan | $6,723 |
| TRICARE true annual cost | $878 |
| Civilian plan true annual cost | $7,600 |
| TRICARE total (premium + out-of-pocket) | $878 |
| Civilian total (premium + out-of-pocket) | $7,600 |
Worked example
An active-duty family with $5,000 in expected medical services pays: TRICARE Prime — $0 premium + $150 deductible + 15% of remaining $4,850 capped at $3,000 = approximately $878/year. A civilian plan at $450/month + $1,500 deductible + 20% of remaining $3,500 = $6,100/year. TRICARE saves $5,222/year — the equivalent of a $6,700 salary raise at a 22% tax rate, since the civilian premium is paid with after-tax dollars. This is the single largest invisible component of military compensation.
Frequently asked questions
What TRICARE plans are available to active-duty members?
Active-duty service members are enrolled in TRICARE Prime at no cost. TRICARE Select is available for dependents at low premiums. TRICARE Prime requires use of military treatment facilities (MTFs) and referred care; TRICARE Select allows direct access to civilian network providers with small cost-shares.
What happens to TRICARE at separation?
TRICARE coverage for the member ends at midnight on the day of separation. Transitional coverage (TRICARE Transition Assistance Management Program) provides 180 days of temporary coverage post-separation at no cost. After that, veterans may purchase TRICARE Reserve Select (if joining the Reserve) or move to private insurance.
Does military retirement include TRICARE for life?
Military retirees and their eligible dependents retain TRICARE until Medicare-eligible (age 65), at which point they transition to TRICARE For Life — a Medicare supplement that covers most gaps in Medicare Parts A and B at essentially no additional cost.
What dental and vision coverage is available under TRICARE?
TRICARE does not cover dental or vision for most active-duty family members. Active-duty members receive dental through the Active Duty Dental Program at no cost. Family members must enroll in the TRICARE Dental Program (a separate premium plan). Vision coverage is available through TRICARE For Life for Medicare enrollees, or separate vision plans.