Next month, he will step away from his active duties. This means Tricare Prime coverage will cease. But what does that really entail?
Many in the military don’t think about this until they retire, often scrambling for health insurance. This confusion can lead to costly consequences, create coverage gaps, and put families at risk.
Let’s break down what actually happens to your health insurance when you leave active duty.
No changes during terminal leave
While you’re on terminal leave, you’re still considered active duty. Thus, your Tricare Prime coverage remains intact. There are no changes and no actions needed from your end. It’s important to distinguish between terminal leave and official separation; separation occurs when active duty officially ends, not when terminal leave starts.
Your family will still be covered under your existing plan during terminal leave. Any plans you were enrolled in, like Tricare Prime or Tricare Select, will still apply.
TAMP provides temporary coverage
The Transition Assistance Management Program (TAMP) gives free Tricare coverage for 180 days after active duty, but it’s not available to everyone.
TAMP eligibility is typically for those who have been involuntarily separated under honorable conditions. This includes service members who qualify for voluntary separation benefits but not retirement benefits. National Guard and Reserve members who have served at least 30 consecutive days in support of emergency operations can also qualify.
If you’ve been separated after a stop loss, you can receive TAMP. Additionally, agreeing to join the Select Reserve right after active duty will also qualify you.
To check if you qualify, visit mil connect or consult your human resources department beforehand. TAMP coverage starts the day after active duty ends, and your family remains covered.
During TAMP, you keep your Tricare Select coverage. No changes in insurance, network, or rules. Prescription coverage continues. If you’re eligible for active duty dental benefits, those will also carry over.
Just remember, TAMP ends after 180 days, so on day 181, you need to have other options arranged.
Costs of CHCBP
The Continuing Health Care Benefits Program (CHCBP) is a paid program that you can sign up for after TAMP expires or after separating if not eligible for TAMP. Coverage lasts between 18 to 36 months, depending on the situation.
CHCBP offers similar benefits as Tricare Select, including access to providers and prescriptions. However, you must pay a quarterly premium. As of 2025, individual coverage costs $1,849 per quarter, while family coverage is $4,621 per quarter.
That translates to $7,396 a year for individual plans and $18,484 for families. Before enrolling, it’s good to compare these options with other plans available in the marketplace or through employers.
Enrollment in CHCBP needs to occur within 60 days of losing your Tricare or TAMP coverage, or you won’t be able to obtain it. Humana Military manages the program.
Reservists have Tricare options
If you decide to join the Guard or Reserve post-active duty, you might be eligible to buy Tricare Reserve Select. Monthly premiums for 2025 are $53.80 for individual coverage and $274.48 for families.
TRS adheres to Tricare Select regulations: the same network and coverage applies. If nursing care is needed, you’ll pay the monthly premium along with copayments and deductibles.
Costs for TRS are lower than CHCBP. TRS individual coverage costs $645.60 annually, whereas CHCBP individual coverage is significantly higher at $7,396. If you qualify for TRS, it’s advisable to take it.
VA healthcare requires application
Transitioning out of active duty doesn’t automatically enroll you in VA health care; you need to apply. You can do this as soon as you get your Separation Order, but benefits won’t start until after separation.
Your eligibility for VA medical care can hinge on your service record, disability rating, income, and other factors. Not everyone is entitled to full veteran benefits.
The VA Concierge for Care team is reaching out to recently separated veterans to assist with enrollment. They can help process your application and arrange your first appointment over the phone.
VA healthcare covers service-related disabilities, and other types of care might be included depending on your priority group. However, it’s important to note that VA benefits alone may not replace Tricare for families, as spouses and children usually aren’t eligible for VA health care.
Stay vigilant about your coverage
Before you separate, it’s wise to review your health insurance options. If you’re eligible, enroll in TAMP; if not, consider CHCBP or TRS. Employment-based insurance from a new civilian job or a plan from the health insurance marketplace could be alternatives.
Remember, lapses in coverage can result in significant medical expenses, especially if someone gets ill or injured. Understand your options clearly: know what you have, when it ends, and your next steps.
Keep informed about veteran benefits
Changes in military benefits happen frequently. It’s a good idea to stay updated. Signing up for Military.com can keep you in the loop about everything from pay to health care, along with the latest benefits delivered straight to your inbox.
