U.S. Military (Ret.): Tricare launches coverage for gray-area retirees - Military Retirement - Navy Times

U.S. Military (Ret.): Tricare launches coverage for gray-area retirees

National Guard and reserve members who have retired from military service but are not yet age 60, the age they can get their retirement benefits, now have a way into the Tricare system.

The Tricare Retired Reserve health insurance plan, aimed specifically at “gray area” reservists, offers Tricare Standard and Extra coverage for individuals as well as families.

TRR, which officially launched Oct. 1, requires qualified retired reservists to pay premiums equal to the full cost of the coverage, without any government subsidy.

As such, the premiums are a little pricey, especially compared with other Tricare plans. The premiums for 2011 will be based on actual costs during 2007 and 2008 for providing Tricare benefits to other beneficiaries in the same age categories as the retired reserve population. Those monthly costs next year will be $408.01 for member-only TRR coverage, and $1,020.05 per month for full family coverage.

Coverage can take up to 30 days after enrollment to become effective. Those who enrolled in September and October should already have seen their benefits begin.

Retirees who wish to purchase TRR coverage should make sure their eligibility information is correct in the Defense Enrollment Eligibility Reporting System.

Drilling reservists who have the separate Tricare Reserve Select program and are nearing retirement may purchase TRR with no break in coverage.

One advantage of TRR is that you can see any health care provider, so you won’t have to change providers if you already have one.

Most gray-area retirees are working in second careers for employers who offer some form of company health insurance, so ultimately a decision on whether to purchase TRR coverage will come down to a question of out-of-pocket costs.

While TRR’s premiums are not inexpensive, the continuing upward spiral in the cost of employer-sponsored health insurance programs may make this new Tricare program competitive for some gray-area retirees.

It’s another option that wasn’t there before, and it’s at least worth your time to sit down and compare coverage and costs and see how they shake out in your particular case.

Complete information on the TRR program, including an overview of the benefits and costs and how to enroll, is available online.

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Retired Command Master Chief Alex Keenan served 28 years in the Coast Guard. E-mail him.