Healthcare Cost Comparison

When you leave active duty, your TRICARE coverage ends on your separation date (or after 180 days if you qualify for TAMP). You have several paths:

• Employer-sponsored insurance — if your new employer offers health benefits, this is often a strong starting point because employers usually pay a large share of the premium, significantly lowering your out-of-pocket cost.
• ACA Marketplace — individual and family plans available through healthcare.gov. Premiums can be offset by subsidies if your income is below 400% of the Federal Poverty Level.
• VA Healthcare — free or low-cost care for veterans with service-connected conditions. Does not cover your family.
• TRICARE Reserve Select (TRS) — available to members of the Selected Reserve. Lower premiums than ACA in most cases, but requires you to join a Reserve or Guard unit.
• TAMP — if you qualify, free TRICARE coverage for 180 days. Use this window to plan and enroll in a permanent option before day 181.

The Transitional Assistance Management Program (TAMP) provides 180 days of TRICARE Prime or Select coverage after separation at no cost to you or your family — the same coverage you had on active duty.

TAMP is not automatic and not available to everyone. Qualifying conditions include: involuntary separation (e.g., reduction in force), early retirement, separation under the Voluntary Separation Incentive (VSI) or Special Separation Benefit (SSB), and certain other special programs.

Verify your TAMP eligibility with your branch's personnel office before separating. If you do qualify, use the 180-day window to compare options, enroll in employer insurance, and avoid a gap in coverage. TAMP ends hard on day 181 — there is no grace period.

VA healthcare covers eligible veterans for conditions that are service-connected (SC) and, at higher eligibility tiers, for general medical care as well. Key points:

• All veterans with a service-connected (SC) disability rating receive care for SC conditions at $0 copay for service-connected care. No premiums.
• Veterans with 50%+ disability ratings (Priority Group 1) generally face $0 copays for most care. Veterans at lower ratings may have copays for non-SC care — amounts vary by priority group.
• 0% SC veterans receive care generally limited to their service-connected conditions.
• VA healthcare covers the veteran only — your spouse and children are not covered and will need separate insurance.

VA healthcare can be a valuable part of your post-service plan, but it covers the veteran only — not spouse or children. Most veterans use VA for SC conditions and employer or ACA coverage for their family and non-SC care. Verify your specific copay schedule at VA.gov based on your priority group.

The Affordable Care Act's premium tax credits (APTC) can significantly reduce your monthly premium if your household income falls below a certain percentage of the Federal Poverty Level (FPL). Generally, lower income relative to the FPL means a larger subsidy — but the exact amount depends on your age, location, and the benchmark plan in your area.

FPL thresholds are based on 2025 federal poverty guidelines used for the 2026 coverage year. Verify current figures at Healthcare.gov.

Subsidies are calculated at tax time and can be taken in advance to reduce your monthly premium. If your income changes during the year, update your marketplace enrollment to avoid a repayment at filing. Losing employer coverage (like separating from service) is a qualifying life event that opens a special enrollment period.

TRICARE Reserve Select (TRS) is a premium-based health plan available to members of the Selected Reserve who are not on active duty orders. In 2026, premiums are $57.88/month for the member only and $286.66/month for member plus family.

TRS provides TRICARE Select-level benefits — comparable to a civilian PPO — with access to the TRICARE network of providers. Annual deductibles are low: $150 for individuals and $300 for families.

To qualify, you must be an actively drilling member of the National Guard or Reserves. If you separate from active duty and join a Reserve unit, TRS can be one of the most cost-effective post-separation coverage options available — often cheaper than both ACA and employer options at equivalent coverage levels.

Plan for more than just monthly premiums. A realistic first-year healthcare budget includes:

• Premiums — your monthly cost × 12. For a family, employer Silver plans average around $6,840/year in employee-paid premiums.
• Deductible costs — most families use roughly 40–50% of their deductible in a given year for routine care. At a $4,000 deductible, budget $1,600–$2,000 for deductible expenses.
• Copays and coinsurance — even after hitting your deductible, many plans charge 20–30% coinsurance until you reach your out-of-pocket maximum.
• Dental and vision — most medical plans do not include dental or vision. Budget $30–$80/month for separate dental and vision coverage if you're coming off TRICARE Dental.

A conservative total healthcare budget for a family in year one is often $10,000–$15,000 depending on plan tier and utilization. This is one of the largest and most frequently underestimated costs of military separation.