Since its inception TRICARE has not charged fees/premiums for those who used Standard or who currently use Select. That will change in 2021. For all currently retired military who retired due to longevity an enrollment fee will go into effect on January 1st of 2021. Of note, the fee will not apply to those who are retired for medical reasons.
Fee Changes Are Not Huge
Individuals will pay a monthly fee of $12.50 and a family will pay $25 per month for a total of $150 or $300 per year. If you receive military retirement the payment will come out of your retired pay. The payments must start on January 1st. You'll most likely set up the payments through MyPay
That is Not All That is Changing
As a reminder when on TRICARE Select, you pay out of pocket until you reach your annual deductible ($150 per person/$300 per family...assuming your are a Group A retiree, which most current retirees should be). You then pay 20% of covered treatments or your prescription co-pay until you reach an annual catastrophic cap currently at $3,000. Then TRICARE pays for everything. The catastrophic cap will increase in 2021 to $3,500.
TRICARE Prime Users Aren't Off the Hook
TRICARE Prime enrollment fees will increase in 2021 too and as far as I can tell the catastrophic cap will increase to $3,500.
Military Finances are Different
Just like serving in the military isn't like being a civilian, military finances aren't just like civilian finances. If you'd like to work with a company that lives and breathes military finances each and every day, give us a call.
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