How is TRICARE for Life primarily funded?

TRICARE for Life is primarily funded through Medicare, which covers most of the healthcare costs, and is supplemented by TRICARE to fill in the gaps. This system is designed to ensure that eligible retirees and their dependents receive comprehensive healthcare benefits.

Medicare serves as the primary payer for services, including hospital stays and outpatient care, and TRICARE for Life acts as a secondary payer, covering costs that Medicare does not pay, such as certain deductibles and co-pays. This dual coverage model is significant because it provides a robust health insurance safety net for eligible military retirees by minimizing out-of-pocket expenses.

The reliance on Medicare makes this option the most accurate representation of how TRICARE for Life is funded, as it does not solely depend on military funding, state programs, or beneficiary premiums. Understanding this funding structure is important as it highlights the collaborative effort between Medicare and TRICARE to support the healthcare needs of military retirees.