Health Care Benefits After Separating from the Military

Health insurance is a topic most military members don’t have to think much about while they are serving. Their health care needs are met for them and their families, allowing them to concentrate on their duties. But things change quickly once you remove your uniform for the last time.

In this article and podcast, we cover the various healthcare options for military veterans and their family members after they leave the military. The options available to you may vary depending on when and where you served, how long you served, your type of discharge (and whether or not it was involuntary or at the conclusion of your contract), whether you served on active duty or in the Guard or Reserves, and other factors. We also cover health care through the Department of Veterans Affairs, buying health insurance through the Affordable Care Act, and health care options for people with low incomes.

We have done our best to cover most scenarios, but it’s always possible we missed something. Please feel free to leave a question or comment here on the article, and we’ll try to point you in the right direction.

Don’t Skip Health Insurance!

One quick note before we begin – it’s very easy to gloss over health insurance when you are separating from the military – there are hundreds of other major things you need to consider, such as finding a job and a new place to live, and making ends meet so you don’t fall behind on bills. But health insurance is something you don’t want to be without. Medical bills are one of the leading causes of bankruptcy, and health insurance can often help you avoid major out-of-pocket expenses. If possible, try to maintain your health coverage.

TRICARE Eligibility After Separating from The Military

Unfortunately, as we said before, you can’t always take your military health care benefits with you when you leave the military. There are a few exceptions to this, including military retirees, those who qualify for the Transitional Assistance Management Program (TAMP), and some veterans with service-connected disabilities.

In the first two examples, your family will also continue to be covered by the military health care system (TRICARE). Those who qualify for medical coverage due to a disability may be eligible for TRICARE or VA medical care, depending on their specific condition and how their separation was coded. This will be determined when you separate (here is the TRICARE page that discusses injuries on active duty). In some instances, the coverage will include the veteran and family members; in other cases, it may cover only the veteran. We will include more specific information for each program in the following paragraphs.

Veterans not eligible for military medical coverage: If you don’t meet the above eligibility qualifications for taking your TRICARE benefits with you, then you will be required to find your own health care. This will apply to the vast majority of veterans who didn’t remain in the military long enough to reach retirement. In this article, we will cover a few other options for finding affordable health care coverage. These tips can help you find the best places to get medical benefits to make sure your family is covered.

Military Retiree Health Care Options

Military retirees are eligible for health care benefits through TRICARE. However, the plans available to you, and their related costs, are determined by whether you retired from active duty or the Reserve Corps, and in some cases by where you live if certain options aren’t available in your location.

Active Duty Retirees:

If you are an active duty retiree, you should continue to be eligible for TRICARE benefits. These benefits differ slightly from active duty benefits, as you will have to enroll and pay a small annual fee for family members. But the plans are close enough to the active duty plans that the transition should be relatively painless compared to seeking out your own insurance.

Prior to age 65, you will be eligible for TRICARE Prime or TRICARE Select. You will need to look closely into these options to see which is the best for you. Also, note that some retirees may only be eligible for TRICARE Select if they don’t live in an area where TRICARE Prime is available. Once retirees reach age 65, they are eligible for TRICARE for Life, which can be used in conjunction with Medicare.

Here is a podcast and a lengthy article on Active Duty Retirement Benefits, including health care benefits and many other benefits.

Guard / Reserve Retirees:

Members of the Reserve Corps who retire are eligible to receive the same retirement benefits as their active duty counterparts once they reach age 60. Prior to that, they are not eligible to receive TRICARE Prime or Select. However, they are eligible for TRICARE Retired Reserve, which is very similar to TRICARE Reserve Select, except that the veteran must pay the full cost of premiums; there are no government subsidies. This can be fairly expensive compared to what they may be used to, but it is comparable to many non-subsidized health care plans.

Many retired members of the Guard or Reserves under age 60 also work a civilian job. This may give the veteran access to an affordable employer-sponsored health care plan. Beyond that, veterans may be eligible for health care from the Department of Veterans Affairs, they may purchase their own health insurance through the Affordable Care Act exchanges or through a private health insurance plan, or they may be eligible for health insurance through Medicaid, which is a state-run program that offers health care coverage for low-income individuals. We cover all of these options later in this guide.

Here is a full Guard and Reserve Retirement Benefits Guide that explains several of these options, along with many other benefits, in more detail.

Military Retiree Dental Care

As of November 2018, dental care is no longer offered to military retirees through TRICARE. It is now offered to military retirees through the FEDVIP program (the same program that is used by civil service retirees). You can choose to use the retired military dental plans through FEDVIP, purchase dental care through a civilian employer, or choose to self-insure for dental coverage.

Note: Guard and Reserve retirees are eligible for military retiree dental care at age 60, the same age as TRICARE eligibility.

Guard and Reserve Health Care Options

I don’t want to tell anyone to rejoin the military simply to get health care coverage, but members of the National Guard and Reserves are eligible for TRICARE Reserve Select, which is a very affordable health insurance plan, coming in at just over $50 per month for an individual, and $200 per month for a family.

The co-pays and out-of-pocket expenses are also very affordable. Again, one shouldn’t join the military for health care coverage, but if they miss the military environment and are seeking the other pay and benefits that come with serving, then this may be a good option.

We discuss TRICARE Reserve Select and other benefits in the article and podcast discussing joining the Guard or Reserves.

Transitioning from Active Duty to the Civilian World

There are several plans available to military members when transitioning out of the military. The health care plan you may be eligible for depends on your individual circumstances. We will cover three major plans in this next section. After that, we will show you some of the plans available to everyone.

Transitional plans:

• Transitional Assistance Management Program (TAMP) – available to military members making an unexpected transition from the military. Also available for family members.
• Continued Health Care Benefit Program (CHCBP) – Similar to a civilian COBRA program; available to all military members when they leave the service. Also available for family members.
• VA Health Care – Available to certain veterans, depending on individual circumstances. We will show you how to know if you qualify. Veteran only.

Transitional Assistance Management Program (TAMP)

The Transitional Assistance Management Program (TAMP) is a short-term health care program that provides you and your family with an additional 180 days of health care coverage after you separate from the military. The benefits are the same as active duty health care, and if you qualify, you and your family will receive DoD-issued ID cards for access to health care on base.

TAMP is designed for military members and their families who must make a quick, sometimes unexpected, exit from military service. Eligibility for TAMP depends on 2 factors: the reason you are separating from the military and your having an honorable discharge. Some qualifying reasons for separation include involuntary separation, stop-loss in support of a contingency operation, voluntary agreement to stay on active duty for less than one year in support of a contingency operation, receiving a sole survivorship discharge, and a few other select circumstances.

Involuntary Separation Guide – This article and podcast provide an in-depth guide covering many of the struggles service members face during an involuntary separation. Highly recommended if you need additional information about what to expect and how to cope with this transition.

If you are eligible for TAMP, it should show up in your DEERS profile, and it is recommended that you apply for these benefits before you separate from the military. This will give you 6 additional months of active-duty health care coverage, which should be enough time to find a civilian health care plan or transition to the Continued Health Care Benefit Program (CHCBP), covered below.

If you do not qualify for TAMP, you and your family members may still be eligible for the Continued Health Care Benefit Program (CHCBP) or some of the other healthcare options listed in this article.

Continued Health Care Benefit Program (CHCBP)

In the civilian world, companies offer their employees COBRA Health Insurance Coverage, which allows their employees to take their group health insurance with them when they leave their company. The only catch is that the former employee must pay the full cost of the plan (i.e., it is no longer subsidized by their former employer). COBRA benefits are usually good for 18 months.

The military doesn’t have a COBRA program, but it offers a program very similar to the Continued Health Care Benefit Program (CHCBP). Participants who are leaving the military health care system (TRICARE) can enroll in the CHCBP.

Program Eligibility: This program offers 18-36 months of benefits and is open to anyone leaving TRICARE, including military members and their families, children who have lost TRICARE eligibility, and divorced spouses. This program is open to a wide range of people, but there is a cost: as of 2026, premiums are $2,103 per quarter for individuals and $5,339 per quarter for families. These rates adjust annually — check TRICARE’s current CHCBP premium page for the latest numbers.

Here is more information about the Continued Health Care Benefit Program (CHCBP).

VA Health Care

There are many misconceptions about VA health care benefits, including who is eligible and under which circumstances. You do not need to have a service-connected disability, you don’t need to have been wounded or injured during your service, and you don’t need to have served in a war zone to be eligible. In fact, eligibility can be as simple as when and where you served.

There are several ways to be eligible for VA health care benefits. Here are just a few (check with the VA for a personalized benefits counseling session to determine your eligibility, or visit the VA website):

• Returning Servicemembers
• Members with a Service-Connected Disability
• Eligibility Based on Other Circumstances
• Low-Income Veterans

Returning Servicemembers (OEF/OIF/OND) – The VA has a program that offers VA health care for up to 5 years after they separate from the military if they deployed for a contingency operation after Nov. 11, 1998. Here is a quote from the VA website:

“Veterans  who served in a theater of combat operations after November 11, 1998, are eligible for an extended period of eligibility for health care for 5 years post discharge.” (Source).

This program includes veterans from active duty, Guard, and Reserve, and is for the veteran only. It does not offer health care benefits for family members.

Members with a Service-Connected Disability: They should be eligible for VA health care. However, their eligibility may only extend to the condition for which they have a disability rating. Other coverage may require out-of-pocket expenses or may be submitted to another insurance plan for payment. Be sure to check with the VA to determine the scope of your eligibility.

Other VA Health Care Eligibility: VA health care eligibility is based on several factors, including active-duty military service, type of military discharge, service-connected disabilities, medical conditions incurred while in service, location of service, and more. You can be eligible based on your service dates, deployments you served on, or other criteria. Here is the VA health care eligibility questionnaire.

Low-Income Veterans: The VA offers health care for low-income veterans. A recent change in the law (2015) removed net worth limitations. The VA will now only consider a Veteran’s gross household income and deductible expenses from the previous year. The VA automatically determines the veteran’s income and deductible expenses by matching records with the Internal Revenue Service and Social Security Administration. This reduces the burden on the veteran to file an annual income eligibility form each year.

Here is more information about VA Health Care Eligibility and about enrolling in the VA health care system.

Civilian Health Care Options

The following health insurance options are usually available to the general public and are worth exploring when you are transitioning from the military or any time you need to renew your plan or look for a new health insurance provider.

Here are some health care options available to the general public:

• Group and Individual Health Insurance – This includes employer-sponsored plans and plans available through the Affordable Care Act.
• Student Health Insurance Plans – generally available to students at some community colleges and universities. Often very affordable.
• Medicaid and Low-Income Options – Income-based eligibility.
• Christian Health Sharing Ministries – such as Medi-Share, Liberty HealthShare, and others. These organizations are often more affordable than traditional health insurance but may have some limitations surrounding pre-existing conditions.

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Group and Individual Health Insurance

Health insurance in the US is usually broken down into two categories: group health care coverage and individual health care coverage.

A group health care plan is a health plan that is shared by a large group of people. These plans are often offered by employers as part of your benefits. TRICARE is an example of a group health care plan.

An individual health care plan is just what it sounds like: a health care plan for an individual or an individual’s family that is not part of a larger group benefits plan. Many of these plans are part of the Affordable Care Act and can be found on Healthcare.gov, or a private website such as eHealthInsurance.com (which I personally found easier to use than the government website).

How to get a group health care plan: A general rule of thumb is that you will be able to get a group health insurance plan through an employer, trade group, or another large group. Some companies also offer health care benefits to part-time employees. It’s always a good idea to find out if there is a waiting period before you are eligible for benefits.

Individual health care plans: They vary by state and region, and I can’t list or cover them all on this site. The most important thing to know is what type of insurance you need, then compare plans to find the best cost/benefit ratio for your family. The best place I have found to compare individual health care plans online is eHealthInsurance.com, which offers a variety of health plans in each state. It doesn’t cost you anything extra to use a third-party site, so feel free to shop around and find one you like.

There are pros and cons to both of these types of health care plans, and you can learn more about them here: Individual Health Insurance vs. Group Health Insurance.

Attending School? Look Into Educational Health Insurance

Most colleges and universities require students to carry health care coverage while attending school, and many of them also offer affordable health care plans to enrolled students and their families. Keep in mind that you need to be enrolled in courses to be eligible for these health care plans, so plan accordingly if you are separating from the military and won’t be starting classes for a few months.

Veterans with Low-Income

Low-income veterans may also be eligible for health care through Medicaid, depending on their income. This is a program sponsored by the state and federal governments. However, each state has different rules and requirements, so it is recommended that you visit your state website or an office to learn more about the options available to you, specific costs (if any), and other features. You should also be aware of the options available to you through the VA.

Health Care Options for Dependents

Some of the healthcare options above are available to the veteran and his or her dependents, while others are available only to the veteran. You may need to mix and match your coverage to ensure all family members receive health care insurance.

For example, spouses and dependents are eligible for the Transitional Management Assistance Program (TAMP) and the Continued Health Care Benefit Program (CHCBP), both of which are mentioned above. Divorced members may also be eligible for certain programs. Dependent children are eligible for standard TRICARE coverage until age 21 (or 23 if a full-time student). After that, they may qualify for TRICARE Young Adult coverage, which extends eligibility until age 26.

Be sure to ask questions and shop around to find the best deal for you and your entire family – even if it means the veteran receives health care from one place, and his or her dependents receive health care insurance from another provider.

Make sure you are covered

Health insurance is one of the most important types of insurance you can ever purchase – it doesn’t take much to run up a large hospital bill, and having insurance can protect you from major bills that may otherwise break you.

Meet the Author

Ryan Guina

Ryan Guina is The Military Wallet's founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Tennessee Air...

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