You’re about to leave active duty next month, and your Tricare Prime coverage will end. What do you do now?
It’s common for service members to wait until they’re out to sort out their health insurance. This can lead to confusion, unexpected costs, and gaps in coverage that leave families vulnerable.
Let’s break down what happens to your health insurance when you transition out of active duty.
Terminal Leave Still Covers You
While on terminal leave, you remain on active duty. This means your Tricare Prime coverage continues just as it was. Don’t mistake terminal leave for your official separation; your separation happens on your official end date, not the start of terminal leave. Your family remains covered under their existing plan as well.
TAMP: A Temporary Safety Net
The Transitional Assistance Management Program (TAMP) provides 180 days of free Tricare coverage after you complete active duty. However, not everyone is eligible.
You qualify if you separate involuntarily under honorable conditions, or if you’re a National Guard or reserve member who served over 30 consecutive days in a contingency operation. Other qualifying scenarios include being stop-lossed or joining the Selected Reserve immediately after active duty.
Check your eligibility on milConnect to ensure you’re covered. TAMP begins right after your active duty ends, and your family is included.
During TAMP, you maintain Tricare Select coverage—no premiums, same network, and same rules apply. Prescription coverage continues for you and your dependents. However, after 180 days, you will need to find alternative coverage.
CHCBP: A Costly Option
If you don’t qualify for TAMP, you might consider the Continued Health Care Benefit Program (CHCBP). This program is available for purchase after TAMP ends, offering coverage for 18 to 36 months depending on circumstances.
CHCBP mirrors Tricare Select in terms of coverage, but you’ll need to pay quarterly premiums. For 2025, individual coverage costs $1,849 per quarter, while family coverage is $4,621 per quarter. That’s a hefty price compared to marketplace plans, so explore all your options before signing up.
You must enroll within 60 days of losing Tricare or TAMP coverage; otherwise, you can’t avail of CHCBP. This program is managed by Humana Military.
Reservists Have an Affordable Option
If you’re transitioning into the Guard or reserve after active duty, you might be eligible for Tricare Reserve Select (TRS). Monthly premiums for 2025 are $53.80 for individual coverage or $274.48 for family coverage.
TRS follows Tricare Select guidelines, providing the same network and care coverage. Considering the lower costs, TRS can save you a significant amount compared to CHCBP—$645.60 per year for TRS versus over $7,000 for CHCBP.
Applying for VA Health Care
Transitioning doesn’t automatically enroll you in VA health care—you need to apply. You can start the application process as soon as you receive your separation orders, but coverage will not kick in until after you leave active duty. Eligibility depends on your service history, income, and other factors. Not everyone gets full VA coverage, and dependents typically don’t qualify.
The VA Concierge for Care team helps newly separated veterans with enrollment via phone, ensuring you get the assistance you need.
Avoiding Coverage Gaps
Sorting out health insurance before separating is crucial. If you qualify, make sure to use TAMP; if not, look into CHCBP or TRS, or explore employer insurance through your new civilian job or options through the Health Insurance Marketplace.
Coverage gaps can be expensive if someone gets sick or injured. Stay informed about what coverage you have, when it ends, and your next steps.
Military benefits often change. To stay updated on everything related to benefits and health care, consider subscribing to resources like Military.com. This way, you can access the latest pay charts and information straight to your inbox.
