Retirement with Tricare Prime Medical

[JimnJen]

Greetings:

I am 63 and will be 64 next March.
I am heading into retirement this coming January. I am a Federal employee with a FERS retirement. I am also retired Navy.
Of all the retirement planning information I have read both through this site and other sites, none include the benefits of having Tricare Prime Retired military medical coverage. I have observed all the comments on having savings for catastrophic medical expenses which I will not ever have to worry about.

For those of you that are not familiar, Tricare Prime costs me @ $540 per year for self +1. It covers all my health care needs with no deductibles as long as I use a Military Treatment Facility (MTF). This also includes hospitalization and prescriptions. There is a modest copay of @ $31 for off base visits, but that is it. If I were to be hospitalized, on base: only pay for food. Off base: only pay for food.
So I have extremely good medical coverage.
Dental and vision are covered in retirement through Fed retirement at a cost of $130 a month.

My TSP account has $250k and I intend to draw $1k per month. I intend to leave that money right were it is (in a TSP account) although I will move it around the C, S and F/G funds depending on the market.
My Navy retirement is $1800 per month, Va disability is $426 per month.
FERS annuity will be $800 per month after taxes, max survivor and dental vision.
We own a avocado orchard in southern California that nets us on average @ $50K a year of which we pay @$20k for mortgage and taxes.
We own property which we are selling to a developer and carrying a contract on that brings in $2450 per month until 01/2023 at which time he has to either make us a balloon payment of $240K or renegotiate another 5 year term.

I am not taking SS until at least 66 1/2 which will be 10/2023 which would be $2292 per month.
Our total monthly expenses are @$3000 not including the avocado orchard.

We currently live in Washington State and are in the process of putting our house on the market in a week. We should gross $70K in proceeds.
We own a home in Virginia Beach VA which is where I retired from the Navy. We left there three years ago and put it up for rent, which a coworker quickly rented from us. We completely remodeled that home from the studs out including plumbing and electrical as well as a new roof in 2017 - 18.
Only thing left is a new HVAC which we will pay for through proceeds from Wa home.
We are moving back to Virginia Beach and moving back into that home, so no major home renovation expenses for many years.

How does my retirement finances/plans sound?

 

[braumeister]

Of all the retirement planning information I have read both through this site and other sites, none include the benefits of having Tricare Prime Retired military medical coverage.

The drawback to your Tricare Prime Retired is that not too many are close enough to a military medical facility to make good use of it. And doesn't that stop when you reach 65 and go on Medicare? You would switch to Tricare For Life (TFL) at that point, which is also wonderful, but different.

 

[JimnJen]

The drawback to your Tricare Prime Retired is that not too many are close enough to a military medical facility to make good use of it. And doesn't that stop when you reach 65 and go on Medicare? You would switch to Tricare For Life (TFL) at that point, which is also wonderful, but different.

Yes, you are right in that you need to be close to a MTF for Tricare Prime to be effective.
We are moving back to Virginia Beach which is surrounded by Navy, Air force and Army bases, with the Navy being the most dominant in the area with @ 5 bases and a Naval Hospital.
It is also an excellent area for Tricare For Life which pays for everything that Medicare doesn't.

 

[RetireBy90]

Do you expect any change in monthly expenses from current to VA Beach ? I would think VA Beach might be a bit more expensive.

Not knowing what your current occupation is, do you expect to be able to work some in retirement or is that out of the question ? That could provide a buffer if needed.

Does your partner plan to retire at the same time or is already retired ?
Are there any income sources or retirement savings from partner ?

I would look at total income VS expenses and build in a buffer amount. If I understand, your disability is part of the $1800 ? You show $3,600 monthly income and various retirement savings of about $850K ($250 TSP, $70 current home, and $500K Orchard - just a SWAG). So your income with minor $1K monthly draw shows about 1% withdraw rate. You could figure the $2,450/month from orchard sale as income for the duration until it is paid off. I made a complex spreadsheet but in the end I pretty much just did as you, income and expenses with changes over time. Of course once we get some inflation your $3,000 expenses will increase but since you have double that in income or more you should be ok. Just remember that.

I would think that your finances are great for retirement. With your addition of even just one SS check of more than $2K/month you should have sufficient income to pay expenses and taxes. Good luck and enjoy retirement.

 

[ExFlyBoy5]

The drawback to your Tricare Prime Retired is that not too many are close enough to a military medical facility to make good use of it. And doesn't that stop when you reach 65 and go on Medicare? You would switch to Tricare For Life (TFL) at that point, which is also wonderful, but different.

Yes, you are right in that you need to be close to a MTF for Tricare Prime to be effective.

I won't say that you are wrong, but being near an MTF has no bearing on the program (except for the cost which is minimal). It basically shadows Medicare and I have found that if a provider takes Medicare, they will most likely take Tricare Prime. As much as I enjoy my retirement check that comes in every month, Tricare Prime (for retirees) *can* be worth much, MUCH more in the correct circumstances.

My DW has had a recurrent spinal tumor that has been operated on 3x. The last two were conducted by one of the best surgeons in the country. The 3rd time, we lived almost 1000 miles from the hospital/doc and they are NOT in the Tricare network. Nonetheless, because of the issue and the medical necessity, Tricare covered it and we have had almost ZERO issues with referrals. This year, we reached that catastrophic cap of $3,000 for bills that are deep into the 5 figures. Surgery. Radiation therapy. Proton therapy. Physical therapy...all done by great practitioners here at home *and* back in Atlanta.

Once you turn 65, you are no longer able to use Tricare Prime but can go on TFL (Tricare for Life) which is probably one of the best Medicare supplements out there. Basically, it will cover most costs that aren't covered my Medicare.

I have a few pilot friends who fly for large airlines and have decent medical available through their jobs but yet they still use Tricare Prime and IMHO, there is no better health insurance out there...both in ability to use as well as cost.

Edit: My DW's first surgery was conducted by an O-6 at BAMC (San Antonio, TX). He was *the guy* who stood up the TBI clinics in Afghanistan and later Iraq. Impressive resume and a leading surgeon in the military world. Nonetheless, he screwed up the surgery pretty bad and the subsequent surgeon said that it looked like the work was done by a 3rd year med student practicing on a cadaver. This was after almost a full year of dealing with a PA who said my DW was "pill seeking" and only had a muscle strain (he only ordered Xrays in the 7 visits she saw him). It wasn't until I was almost charged with an Article 15 for making quite the scene outside the Wilford Hall Medical Center commander's office did she get an MRI that showed the extent of the tumor. So, if I don't put a lot of faith in using the MTF...it's free for a reason.

 

[Lewis Clark]

Tricare Prime for retirees is available even if you are not near a military medical facility. You just find a provider in your area that accepts it - not all do.

Agree it is a very valuable benefit!

 

[MrsHaloFIRE]

I would factor in the catastrophic cap rising, the price of Medicare (far more expensive than the tricare fee). Also VA taxes on your pensions. They notoriously suck


Exflyboy im so sorry to hear about your wife's outcome with Wilfird hall. Its been my experience that the 06 is not usually the best doc or surgeon but may indeed run that dept. Ex: I had a female O6 tear me up with a dermatology laser at Wilford hall. Turns out the 03 was training her. She didnt learn it in school like he did. Nit enough hands on patients and more time pushing paper.

 

[Offgrid Organic Farmer]

The drawback to your Tricare Prime Retired is that not too many are close enough to a military medical facility to make good use of it. ...

I must disagree.

When I retired, I returned stateside, I then lived near a US Navy base and I was treated on-base.

Four years later we moved away from military bases.

Tricare is good everywhere in the USA. Here in Maine, every hospital, every doctors office and clinic, views Tricare as the gold standard of insurance. There is no 'better' healthcare coverage in the nation.

And best of all we are treated by MD Doctors. No more HM corpsmen and medics.

 

[wrigley]

Greetings:

I am 63 and will be 64 next March.
I am heading into retirement this coming January. I am a Federal employee with a FERS retirement. I am also retired Navy.
Of all the retirement planning information I have read both through this site and other sites, none include the benefits of having Tricare Prime Retired military medical coverage. I have observed all the comments on having savings for catastrophic medical expenses which I will not ever have to worry about.

For those of you that are not familiar, Tricare Prime costs me @ $540 per year for self +1. It covers all my health care needs with no deductibles as long as I use a Military Treatment Facility (MTF). This also includes hospitalization and prescriptions. There is a modest copay of @ $31 for off base visits, but that is it. If I were to be hospitalized, on base: only pay for food. Off base: only pay for food.
So I have extremely good medical coverage.
Dental and vision are covered in retirement through Fed retirement at a cost of $130 a month.

My TSP account has $250k and I intend to draw $1k per month. I intend to leave that money right were it is (in a TSP account) although I will move it around the C, S and F/G funds depending on the market.
My Navy retirement is $1800 per month, Va disability is $426 per month.
FERS annuity will be $800 per month after taxes, max survivor and dental vision.
We own a avocado orchard in southern California that nets us on average @ $50K a year of which we pay @$20k for mortgage and taxes.
We own property which we are selling to a developer and carrying a contract on that brings in $2450 per month until 01/2023 at which time he has to either make us a balloon payment of $240K or renegotiate another 5 year term.

I am not taking SS until at least 66 1/2 which will be 10/2023 which would be $2292 per month.
Our total monthly expenses are @$3000 not including the avocado orchard.

We currently live in Washington State and are in the process of putting our house on the market in a week. We should gross $70K in proceeds.
We own a home in Virginia Beach VA which is where I retired from the Navy. We left there three years ago and put it up for rent, which a coworker quickly rented from us. We completely remodeled that home from the studs out including plumbing and electrical as well as a new roof in 2017 - 18.
Only thing left is a new HVAC which we will pay for through proceeds from Wa home.
We are moving back to Virginia Beach and moving back into that home, so no major home renovation expenses for many years.

How does my retirement finances/plans sound?

I remember when I was stationed in Virginia. 1979-1989. I lived in Va Beach and worked at NAS Norfolk. My time there was amazing. It still had that "small town feeling". The main drag leading to Dam Neck was surrounded by a pig farm. During the hot summer months you could smell it for miles! There was absolutely NOTHING in Chesapeake but open land. I was there when the HOV lanes were put in. I bought my first home in Va. Beach and still own it today. I have many friends that either left the military or retired in that area and are still living there today. The congestion there is mind blowing and the cost of living is rather high. I have many fond memories of that area but no desire to move back. I'll stick with FL and NO SNOW! Good Luck to you with your move back.



Mike

 

[deserat]

Greetings:
Of all the retirement planning information I have read both through this site and other sites, none include the benefits of having Tricare Prime Retired military medical coverage. I have observed all the comments on having savings for catastrophic medical expenses which I will not ever have to worry about.

For those of you that are not familiar, Tricare Prime costs me @ $540 per year for self +1. It covers all my health care needs with no deductibles as long as I use a Military Treatment Facility (MTF). This also includes hospitalization and prescriptions. There is a modest copay of @ $31 for off base visits, but that is it. If I were to be hospitalized, on base: only pay for food. Off base: only pay for food.
So I have extremely good medical coverage.
...

With the transition of military health services (MHS) to the Defense Health Agency (DHA), there is a concerted effort to have the MTFs provide services for active duty and dependents before retirees. Moreover, I've found that even for dependents there is a push to have the healthcare services provided on the economy with TRICARE as the insurance. Just last fall, they've restricted retiree/dependent access to services at many MTFs/military clinics in the USA.

As many others have said, at age 65 you would transition to Medicare and can sign up for TRICARE for life. As also stated, wherever you live, you will need to find clinicians who will accept the Medicare/TFL insurance combination. Nevertheless, the costs you will pay will be much less than most in the USA.

I am a gray area retiree and can purchase TRICARE, however, I pay full boat (for single person ~$500/mo along with associated deductible and co-pays - it is a similar price to most insurance available on the market for a person my age and in whatever state I happen to be living in at the time) until age 60 where I will then have the TRICARE retiree insurance.

With regard to your overall financial picture, as long as you are living in a paid off property, you are very fortunate as you have essentially four pensions that are cost of living adjusted (quasi-inflation proof: FERS, military, VA disability and SS). If your lifestyle costs can be covered by those pensions, all else is gravy for wants.

 

[wrigley]

With the transition of military health services (MHS) to the Defense Health Agency (DHA), there is a concerted effort to have the MTFs provide services for active duty and dependents before retirees. Moreover, I've found that even for dependents there is a push to have the healthcare services provided on the economy with TRICARE as the insurance. Just last fall, they've restricted retiree/dependent access to services at many MTFs/military clinics in the USA.

You are correct. I have seen that play out here in Jacksonville Fl. My PCM is at a small Branch Medical Clinic at NS Mayport Florida. It is very close to home so when I retired (22 years ago), I told them I wanted to be seen there. The doctor I currently have is a civilian and used to be an active duty O-5 at the clinic when I was also on active duty.


Over the years I have seen the clinic get so crowded with retirees that they were given the option to remain on Tri-care prime but see a civilian doctor in the outside world and Tri-care Prime would pick up the tab. I have also seen those same people RECALLED to the clinic due to low patient numbers reported. At that point they could stay on Tri-care Prime at the clinic or switch to Tri-care Standard (I believe it's called something different now) and continue to see their doctor out in town. It has gone in cycles since I retired. My wife and I are happy at the clinic, but we can both see the writing on the wall that eventually ALL military retirees will be driven from the military base clinics for their primary care and required to pick a physician in the outside world.


Mike

 

[ExFlyBoy5]

Exflyboy im so sorry to hear about your wife's outcome with Wilfird hall. Its been my experience that the 06 is not usually the best doc or surgeon but may indeed run that dept. Ex: I had a female O6 tear me up with a dermatology laser at Wilford hall. Turns out the 03 was training her. She didnt learn it in school like he did. Nit enough hands on patients and more time pushing paper.

Normally I would agree, but at the time he was *the* preeminent neurosurgeon in the entirety of the uniformed services. He had/has a very impressive resume and undoubtedly saved hundreds of lives (if not more!) in a very challenging AOR. I would have called him to the Sanjay Gupta of DoD neurosurgeon (and oddly enough, the two had worked together in Afghanistan for a bit). Even odder (or coincidentally) is that Sanjay Gupta is associated with the practice of my wife's current surgeon.

And thank you for the thoughts...it is appreciated. She is doing well and the latest MRIs seem to indicate that unlike the last couple of times, the got ALL of the tumor and a decent margin. Proton therapy has shown to be pretty effective on that type of tumor tissue as well, so hopefully her 33 "microwave" treatments will put a final stop to the madness!

 

[friar1610]

So, if I don't put a lot of faith in using the MTF...it's free for a reason.

Our experience with MTFs during 28+ years of active duty was a mixed bag and not entirely pleasant. So when I retired I opted to use civilian providers and to select plans where I had the most choice of providers, even if it was a bit more costly. So, in the pre-Medicare/TFL days, at different times, I used:

- TRICARE Standard with a MOAA MEDIPLUS supplement
- My wife's employer's BC/BS plan with TRICARE as a second payer
- My employer's plan with TRICARE as second payer.

I really didn't want an HMO-type plan where I would have to be "in network" all the time and need referrals to see specialists. It cost me a few bucks more than other alternatives but was worth it to me.

Now that I'm on Medicare with TRICARE-for-Life as the supplement, I have the best coverage I've ever had. Except for co-pays on the excellent drug plan, I only rarely have any out-of-pocket costs. And then only when Medicare doesn't cover something that TRICARE does. In those very rare instances, TRICARE in effect becomes the primary insurer for that service and I'm on the hook for the copayment/deductible. I think that's happened maybe 2 or 3 times in 10 years.

 

[srpuywa]

I live in WA and use Tricare for Life (Prime), We live close to Madigan Army Medical Center and they have a off base clinic in our town (Puyallup), we've had great service and care so far.

 

[Retiredmajor]

I retired at age 60, my wife retired the same year at age 59. We were able to because I'm retired Military. I served a combination of Active Duty and National Guard. I eventually retired from the Iowa National Guard. So we had Tricare Insurance the minute I turned age 60. It has been WONDERFUL! We don't live near any military bases but Tricare is accepted EVERYWHERE around where we live. No monthly premiums and 85/15 in network. Most doctors just accept the Tricare rate and we have paid very little out of pocket in the last 4 years. (knock on wood - we are both very healthy!). Next year I turn 65 and will go on Medicare and then Tricare becomes our low cost supplement. We won't need Medicare Part D because Prescriptions are covered by Tricare and are very inexpensive. Without Tricare I have no doubt we would have worked additional years just to have quality health care. We are very grateful for this amazing benefit.

 

[Badger]

We are both retired and have Medicare as primary and Tricare for Life as secondary. For the past 8 years I don't recall any medical bills even after 3 back surgeries including fusion, a knee replacement, wrist screws, etc. All the surgeons and doctors accept the combination. The only time we go to the base is for a few prescriptions that are free to pick up. I don't recall the annual fee for Tricare for Life but it is minimal, maybe somewhere around $400/yr. That is a great benefit that you worked for instead of a higher salary when so many others were making so much more income during that time in the private sector.



Cheers!

 

[friar1610]

I don't recall the annual fee for Tricare for Life but it is minimal, maybe somewhere around $400/yr. That is a great benefit that you worked for instead of a higher salary when so many others were making so much more income during that time in the private sector.

Cheers!

There is NO fee for TRICARE for Life (although you do have to enroll in and pay for Medicare Part B to be eligible for it.)

 

[JimnJen]

I remember when I was stationed in Virginia. 1979-1989. I lived in Va Beach and worked at NAS Norfolk. My time there was amazing. It still had that "small town feeling". The main drag leading to Dam Neck was surrounded by a pig farm. During the hot summer months you could smell it for miles! There was absolutely NOTHING in Chesapeake but open land. I was there when the HOV lanes were put in. I bought my first home in Va. Beach and still own it today. I have many friends that either left the military or retired in that area and are still living there today. The congestion there is mind blowing and the cost of living is rather high. I have many fond memories of that area but no desire to move back. I'll stick with FL and NO SNOW! Good Luck to you with your move back.



Mike

First time I landed in Virginia was 1983, had a short 3 month school then headed out to Bremerton Wa for first sea duty assignment.
Second time was when I transferred stateside from Scotland in 94. That pig farm on Damneck blvd was still there.
I have owned four homes in the Hampton roads area with one by Little Creek Amphib base I still own and the one we are retiring back to. After a short three years away the wife and I are eager to return. I look forward to the winter months as the summer months are one continuous sweat bath.

 

[braumeister]

in the pre-Medicare/TFL days, at different times, I used:

- TRICARE Standard with a MOAA MEDIPLUS supplement

- My employer's plan with TRICARE as second payer.

Now that I'm on Medicare with TRICARE-for-Life as the supplement, I have the best coverage I've ever had. Except for co-pays on the excellent drug plan, I only rarely have any out-of-pocket costs. And then only when Medicare doesn't cover something that TRICARE does. In those very rare instances, TRICARE in effect becomes the primary insurer for that service and I'm on the hook for the copayment/deductible. I think that's happened maybe 2 or 3 times in 10 years.

This (edited) quote exactly describes my experience since my retirement from the military.

 

[JimnJen]

You are correct. I have seen that play out here in Jacksonville Fl. My PCM is at a small Branch Medical Clinic at NS Mayport Florida. It is very close to home so when I retired (22 years ago), I told them I wanted to be seen there. The doctor I currently have is a civilian and used to be an active duty O-5 at the clinic when I was also on active duty.


Over the years I have seen the clinic get so crowded with retirees that they were given the option to remain on Tri-care prime but see a civilian doctor in the outside world and Tri-care Prime would pick up the tab. I have also seen those same people RECALLED to the clinic due to low patient numbers reported. At that point they could stay on Tri-care Prime at the clinic or switch to Tri-care Standard (I believe it's called something different now) and continue to see their doctor out in town. It has gone in cycles since I retired. My wife and I are happy at the clinic, but we can both see the writing on the wall that eventually ALL military retirees will be driven from the military base clinics for their primary care and required to pick a physician in the outside world.


Mike

Since retiring from the Navy, my wife and I have used Tricare Prime and our PCM is at a MTF on base, currently the Naval Hospital Bremerton Wa. Prior to that, our PCM was at the Clinic on Little Creek Amphib Base in Virginia Beach, Va.
We have had nothing but the best care with no complaints. Out here in Washngton we have gone to Madigan Army Hospital and had excellent care there too. Just like in the service as well as in town, there is always going to be a percentage of folks who have issues with providers. We are lucky I guess.

 

[JimnJen]

Do you expect any change in monthly expenses from current to VA Beach ? I would think VA Beach might be a bit more expensive.

Not knowing what your current occupation is, do you expect to be able to work some in retirement or is that out of the question ? That could provide a buffer if needed.

Does your partner plan to retire at the same time or is already retired ?
Are there any income sources or retirement savings from partner ?

I would look at total income VS expenses and build in a buffer amount. If I understand, your disability is part of the $1800 ? You show $3,600 monthly income and various retirement savings of about $850K ($250 TSP, $70 current home, and $500K Orchard - just a SWAG). So your income with minor $1K monthly draw shows about 1% withdraw rate. You could figure the $2,450/month from orchard sale as income for the duration until it is paid off. I made a complex spreadsheet but in the end I pretty much just did as you, income and expenses with changes over time. Of course once we get some inflation your $3,000 expenses will increase but since you have double that in income or more you should be ok. Just remember that.

I would think that your finances are great for retirement. With your addition of even just one SS check of more than $2K/month you should have sufficient income to pay expenses and taxes. Good luck and enjoy retirement.

Yes, I do expect my monthly expenses to change when we return to Virginia Beach. I currently live near Seattle and we bought a $500,000 home which we are putting on the market in two days. We own a home in Virginia Beach that we have been renting out to a coworker which we fully remodeled before we transferred out here.
Our monthly expenses are over $4k here and will be roughly $3k in Virginia Beach.
The wife and I are talking about running a small business out of our home but we do not need to.
My wife is retired, her income stream is from our avocado orchard in southern Cali.
$2450 per month is from a piece of land that we are selling to a developer with us carrying the contract.
The Avocado orchard is worth @ $1M and we do not plan on selling that, we will continue to split the profits with the Grove management company, at least for 3 to 5 more years at which time we are looking into developing the property by creating 5 acre home tracts with their own mini groves.