Trying to understand Tricare

Q: My husband retired in December 2007. I had a baby in October ‘08.  My son was born 2 1/2 months premature which meant a long hospital stay.  Tricare said we are responsible for up 25% of all the hospital bills since my husband is retired.  My question: is there a transition period where a service member and their family members are still entitled to full coverage?  Did my health benefit change to Tricare Prime the day after my husband retired?  Thank you.

-Nadine, Dayton, Ohio (made up location :))

 

A:  As a financial planner I’m constantly asking folks what they plan to do in retirement.  It’s rare – okay it never happens – that someone says, “Have kids.”  Best wishes with that little bundle of joy! 

When your husband retired he should have been offered the option of enrolling in Tricare Prime, otherwise the default would be Tricare Standard (which, by the way, doesn’t have an annual enrollment fee).  Since you refer to that “25%” figure that would indicate to me you’re actually using Tricare Standard.  The good news is that regardless of which option you have, the maximum out-of-pocket costs are limited to $3,000.  So, that should help.  The Tricare website is chocked full of good information and contact phone numbers so that you can fully understand this valuable benefit!

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