On November 7, 2023, TRICARE published its fees for 2024. The TRICARE official site notes, “… you may see changes to your TRICARE health plan costs starting on Jan. 1, 2024. These costs may include enrollment fees, premiums, cost-shares, and copayments.” There are increased costs for many options and plans for 2024.
According to TRICARE.mil, the costs may change every year “based on the law and the federal cost of living adjustment,” as well as factoring in increases in prescription drugs and healthcare in general.
Who is Affected by TRICARE Price Increases?
2024 brings increased TRICARE premiums for retirees, reserve members, veterans, and young adults. These changes coincide with a shakeup in TRICARE coverage regions scheduled to happen around the same time.
Some may have noticed a trend in higher TRICARE costs due to a long-term DoD plan to increase the patient portion of these costs over time until 2027. There are muliple plans affected by the 2024 fee increases, as we will discover below.
TRICARE Changes For 2024
Higher costs are scheduled in 2024 for those in TRICARE Young Adult Prime. These enrollees will pay nearly 12% more, and they do so on the heels of other price hikes for the same coverage.
By comparison, in 2021, patient costs for TRICARE Young Adult Prime were reported to have increased by more than 20%.
TRICARE Young Adult Select increased its rates by almost 7% in 2024, and between these two options, nearly 40 thousand beneficiaries were enrolled in the Young Adult.
These increases are due in part thanks to a policy that requires the federal government to pay zero costs while offering a Young Adult Prime health coverage option. There are other cost increases to note, including but not limited to the following:
- Tricare Reserve Select: The monthly premiums increase by over 7% for individual and family family coverage.
- Tricare Retired Reserve: The premiums increase by more than 6% (individual and family coverage.)
- Continued Health Care Benefit Program: This option for transitioning service members increases by more than 9%.
Related: Private Life Insurance For Military Members
Other TRICARE Changes Coming in 2024
TRICARE announced in 2022 that major changes were coming to its TRICARE East and TRICARE West divisions. This is due to a new contract scheduled for 1 January 2024.
A press release on TRICARE.mil notes, “A new TRICARE contract that facilitates beneficiary health care in the civilian sector, known as T-5, is expected to start in 2024. The changes will improve the delivery, quality, and cost of health care services for services for service members, retirees, and their families.”
In 2024, Humana Government Business and TriWest Healthcare Alliance Corporation serve as regional or managed care support contractors.
“If you live in the TRICARE East Region, Humana Government Business (Humana Military) will administer your health plan and provide TRICARE coverage,” according to a press release on the official site, which adds, “If you live in the TRICARE West Region, TriWest Healthcare Alliance Corporation will administer your health plan and provide TRICARE coverage.”
What does all of this mean? For some, it may mean nothing, but for six East Region states, it means being transferred to the TRICARE West Region. About a million and a half people are affected by this, with states moving from the East region to the West region including:
- Arkansas
- Illinois
- Louisiana
- Oklahoma
- Texas
- Wisconsin
This move was designed to streamline TRICARE processes and make care more accessible according to the official site. If you are unsure how this move affects your care, contact your TRICARE rep as soon as possible.
Read more: Ultimate TRICARE Guide