One of the most common questions military retirees ask is: "Do I really have to pay for Medicare Part B?" The answer is yes - and understanding why is critical to keeping your TRICARE coverage.
This guide explains the relationship between TRICARE For Life and Medicare Part B, what it costs, and why skipping Part B is one of the most expensive mistakes you can make.
★ Key Takeaway
- You MUST enroll in Medicare Part B to keep TRICARE For Life
- You MUST pay the Part B premium (there is no military discount)
- If you skip Part B, you lose TRICARE coverage entirely
- Late enrollment = permanent penalties on top of lost coverage
Why Medicare Part B Is Required for TRICARE For Life
This Is the #1 Mistake Military Retirees Make
Many military retirees assume TRICARE will continue as usual after 65. It won't. If you don't enroll in Medicare Part B when you turn 65, you will lose ALL TRICARE coverage. No exceptions.
TRICARE For Life was designed to work with Medicare, not replace it. Here's how the system works:
- Medicare pays first - When you receive medical care, Medicare Part A or Part B covers its portion
- TRICARE For Life pays second - TFL then covers most or all of what Medicare doesn't
- Without Part B, there's nothing for TFL to supplement - The system breaks down entirely
Think of it this way: TRICARE For Life is specifically designed as a Medicare supplement. If you don't have Medicare, there's nothing to supplement. For more details on how this coverage works together, see our TRICARE to Medicare Transition Guide.
Medicare Part B Costs for Military Retirees (2025)
Military retirees pay the same Medicare Part B costs as everyone else. There is no military discount or exemption.
| Cost Component | 2025 Amount |
|---|---|
| Standard Part B premium | ~$185/month |
| Annual deductible | $257/year |
| TRICARE For Life premium | $0 (no additional cost) |
Higher-Income Premium Adjustments (IRMAA)
If your income is above certain thresholds, you'll pay more for Part B. These are called Income-Related Monthly Adjustment Amounts (IRMAA):
| Income (Individual) | Income (Married) | Monthly Premium |
|---|---|---|
| $103,000 or less | $206,000 or less | ~$185 |
| $103,001 - $129,000 | $206,001 - $258,000 | ~$259 |
| $129,001 - $161,000 | $258,001 - $322,000 | ~$370 |
| $161,001 - $193,000 | $322,001 - $386,000 | ~$480 |
| Over $193,000 | Over $386,000 | ~$594 |
How You Pay the Part B Premium
If you're receiving Social Security benefits, your Part B premium is automatically deducted from your Social Security check. If you're not yet receiving Social Security, you'll receive a quarterly bill from Medicare.
How Part B and TRICARE For Life Work Together
When you have both Medicare Part B and TRICARE For Life, here's what happens when you see a doctor:
- You visit a doctor for a $200 service
- Medicare Part B pays its share (typically 80% after deductible) = $160
- TRICARE For Life automatically pays the remaining 20% = $40
- Your out-of-pocket cost = $0
This coordination happens automatically. You don't need to file claims or coordinate between programs. Your healthcare provider handles everything.
The result: despite paying the Part B premium, your total healthcare costs are minimal. Most military retirees pay very little out-of-pocket for covered medical services. For a complete look at what TFL covers, see Is TRICARE For Life Enough Coverage?
What Medicare Part B Covers
Medicare Part B covers outpatient and preventive services. Here's a quick overview (see our Medicare Parts Explained guide for complete details):
- Doctor visits - Office visits, specialist consultations
- Outpatient care - Same-day surgery, ER visits, lab work
- Preventive services - Annual wellness visits, vaccinations, screenings (many are free)
- Mental health services - Therapy, psychiatric visits
- Durable medical equipment - Wheelchairs, walkers, oxygen equipment
- Some home health care - Part-time skilled nursing, therapy services
Late Enrollment Penalties - Don't Make This Mistake
Late Enrollment Penalties Are Permanent
If you don't enroll in Part B when you're first eligible and don't have other qualifying coverage, you'll pay a permanent penalty on your Part B premium. This penalty lasts for the rest of your life.
The Part B late enrollment penalty is calculated as follows:
- 10% additional premium for each full 12-month period you could have had Part B but didn't
- This penalty never goes away - you'll pay it every month for life
Example: If you wait 2 years to enroll in Part B when you could have enrolled at 65, your Part B premium will be 20% higher than the standard premium - forever. At 2025 rates, that's an extra $37/month, or $444/year, for the rest of your life.
And remember: during those 2 years without Part B, you would have had no TRICARE coverage at all. For more common mistakes to avoid, see Medicare Enrollment Mistakes to Avoid.
When to Enroll in Medicare Part B
Your Initial Enrollment Period (IEP) for Medicare is a 7-month window around your 65th birthday:
- Starts: 3 months before your 65th birthday month
- Includes: Your birthday month
- Ends: 3 months after your birthday month
Best practice: Enroll during the 3 months before you turn 65. This ensures your coverage starts right on your birthday with no gap.
How to Enroll
- Online: SSA.gov
- By phone: 1-800-772-1213 (Social Security)
- In person: Visit your local Social Security office
For a complete timeline and step-by-step instructions, see our TRICARE to Medicare Transition Guide.
Do You Need Medicare Part D with TRICARE For Life?
No, you do not need Medicare Part D.
TRICARE For Life includes comprehensive prescription drug coverage through the TRICARE pharmacy benefit. This coverage is considered "creditable" - meaning it's at least as good as Medicare Part D.
- You can skip Part D without penalty (TFL counts as creditable coverage)
- TRICARE pharmacy benefits are usually better than Part D plans
- You have access to military pharmacies, mail-order, and retail options
Unlike Part B, there's no requirement to have Part D to maintain TRICARE For Life. For more on this topic, see Is TRICARE For Life Enough Coverage?
Frequently Asked Questions
Do military retirees have to pay for Medicare Part B?
Yes. Military retirees must pay the Medicare Part B premium (approximately $185/month in 2025) to qualify for TRICARE For Life. There is no military exemption or discount on this premium. However, TRICARE For Life coverage itself has no additional premium beyond Part B.
Can I keep TRICARE without Medicare Part B?
No. Once you turn 65 and become Medicare-eligible, you must enroll in both Medicare Part A and Part B to maintain TRICARE coverage. If you don't enroll in Part B, you'll lose TRICARE benefits entirely. This is a common misconception that catches many military retirees off guard.
Does TRICARE For Life cover the Part B deductible?
TRICARE For Life covers Medicare's 20% coinsurance after the deductible, but the Part B deductible ($257 in 2025) is typically your responsibility. However, some services may have different cost-sharing. Overall, TFL significantly reduces your out-of-pocket costs compared to Original Medicare alone.
How much is Medicare Part B for military retirees?
Military retirees pay the same Medicare Part B premiums as everyone else. The standard premium is approximately $185/month in 2025, with higher premiums for those with income above $103,000 (individual) or $206,000 (married filing jointly). TRICARE For Life does not cover this premium.
What happens if I don't sign up for Part B at 65?
If you're a military retiree and don't enroll in Part B when first eligible (at 65), you'll lose TRICARE coverage immediately. You'll also face late enrollment penalties when you eventually do enroll: your Part B premium will be 10% higher for each 12-month period you could have had Part B but didn't. These penalties last for life.
Need Personalized Help?
Confused about Medicare enrollment? Every military retiree's situation is unique. A fee-only Medicare advisor can help you navigate the process and ensure you don't miss critical deadlines.