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Retirees Urged to Prepare for New Tricare Select Fees

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Marcy Sanchez
Friday, October 30, 2020

Military retirees affected by new monthly enrollment fees for Tricare Select health care coverage can now set up their automatic payments.

The monthly enrollment fees kick in Jan. 1, 2021.

Mandated in the 2017 National Defense Authorization Act, the change applies to Group A retirees, whose initial enlistment or appointment occurred before Jan. 1, 2018, and their beneficiaries. This marks the first time this group of beneficiaries will be charged such fees.

Retirees in this group must act if they want to keep their Tricare Select coverage in 2021, according to the Tricare website. Tricare open season runs Nov. 9 through Dec. 14, but payments can be set up now.

Those affected by this change must set up a monthly allotment through their DoD pay center or via electronic funds transfer, credit card or debit card.

Tricare is encouraging beneficiaries to set up their payments as soon as possible. Those who set up their payments after Nov. 20 may have to pay for one or more months up front to allow time for the allotment to be processed, according to Tricare.

Beneficiaries can be disenrolled from Tricare Select if they fail to pay enrollment fees by Jan. 1, according to Tricare. If that happens, beneficiaries have 180 days from their last paid through date to request reinstatement.

Individual enrollment fees are $12.50 a month or $150 a year. Retirees on a family plan pay $25 a month or $300 a year. Enrollment fees are waived for active-duty family members, survivors or medically retired retirees or family members, according to Tricare.

Additionally, the catastrophic cap will increase from $3,000 to $3,500; the enrollment fees will apply toward the catastrophic cap.

Beneficiaries who use Tricare for Life, Tricare Prime, Tricare Reserve Select, Tricare Retired Reserve or Tricare Young Adult are not affected.

Depending on your Tricare contractor, you may set up your payments online, by phone or by mail. For more information, click here and here.