Military families and retirees covered by Tricare will face higher healthcare costs in 2026, with most plans seeing increases between 2% and 3%. The Military Health System announced the new rates on November 7, detailing changes to enrollment fees, deductibles, and copayments that will affect millions of beneficiaries.
Some of the most significant price hikes will impact those enrolled in premium-based plans, including Tricare Reserve Select and Tricare Young Adult, with certain premiums jumping by more than 9%. These adjustments arrive just ahead of the annual open enrollment season, which runs from November 10 to December 9.
Key Takeaways
- Most Tricare health plan costs will increase by 2-3% for 2026.
- Retirees will see higher annual enrollment fees for both Tricare Prime and Select plans.
- Tricare Young Adult Prime premiums will increase by 9.2%, rising from $727 to $794 per month.
- The catastrophic cap, which limits annual out-of-pocket expenses, will also rise for most retirees and some active-duty families.
- The Tricare open enrollment period for making plan changes is from November 10 to December 9.
Understanding the 2026 Tricare Cost Adjustments
The upcoming changes to Tricare costs are part of an annual adjustment process. The impact on a specific family or individual depends heavily on their beneficiary category, including whether they are active-duty, retired, a reservist, and when the sponsor first entered military service.
The Military Health System divides beneficiaries into two primary categories: Group A and Group B. This distinction is based on the service member's initial entry date.
Group A vs. Group B: Beneficiaries are categorized based on their sponsor's initial enlistment or appointment date. Those whose sponsor joined before January 1, 2018, are in Group A. Those who joined on or after that date are in Group B. This grouping often determines the structure of fees, deductibles, and copayments.
While active-duty families are shielded from annual enrollment fees, retired military members will bear the brunt of fee increases across both Tricare Prime and Tricare Select plans.
Higher Enrollment Fees for Retirees
For retirees, the annual cost to remain enrolled in their chosen Tricare plan is set to climb. Those in Group A enrolled in Tricare Prime will see their family plan fee increase from $744 to $765 per year. An individual plan will rise from $372 to $381.96.
Retirees in Group A who use Tricare Select will also pay more. The annual fee for a family plan will go from $364.92 to $375, and an individual plan will increase from $181.92 to $186.96.
Group B retirees face similar adjustments. A Tricare Prime family plan will cost $927 annually, up from $900.96, while a Tricare Select family plan will increase to $1,191 from $1,158.96.
Premium Hikes Target Specific Plans
Some of the most notable increases for 2026 are in the monthly premiums for specialized Tricare plans. These plans are not tied to retirement status but serve specific segments of the military community, such as reservists and young adult dependents.
The Tricare Young Adult Prime plan will see one of the largest percentage increases, jumping 9.2% from $727 to $794 per month.
The Tricare Young Adult program allows dependents to remain on Tricare until age 26. The Select option for this program will also see a 7.7% increase, with monthly premiums rising from $337 to $363.
Costs for Guard and Reserve Members
Members of the National Guard and Reserve who use Tricare Reserve Select will also see their monthly costs go up. Key changes include:
- Individual Member Premium: Increases by 7.6% from $53.80 to $57.88 per month.
- Family Premium: Rises by 4.4% from $274.48 to $286.66 per month.
For those in the Tricare Retired Reserve program, premiums are also on the rise. An individual plan will increase from $631.26 to $645.90 per month, while a family plan will go from $1,513.04 to $1,548.30.
Changes to Deductibles and Copayments
In addition to enrollment fees and premiums, many beneficiaries will see changes in their out-of-pocket costs for medical services, including deductibles and copayments.
Deductibles, the amount a beneficiary must pay before Tricare begins to cover costs, apply only to those using Tricare Select. Beneficiaries in Group A will see no changes to their deductibles for 2026.
However, those in Group B will see slight increases. For a family with a sponsor ranked E-5 or above, the annual deductible will rise from $386 to $397. For those with a sponsor ranked E-4 or below, the family deductible increases from $128 to $132.
Copayments for doctor visits are also being adjusted. For example, a primary care visit for an active-duty family member in Group A using Tricare Select will now cost $28, a slight increase from $27. For a retired family in the same group and plan, the cost will be $38, up from $37.
The Catastrophic Cap Rises
A critical component of the Tricare program is the catastrophic cap, which sets the maximum amount a family will pay out-of-pocket for covered services in a calendar year. Once this limit is reached, Tricare covers 100% of all remaining allowed charges.
For 2026, this financial safety net will be set higher for most beneficiaries. The cap for active-duty families in Group A remains unchanged at $1,000 annually. However, for active-duty families in Group B, the cap will increase from $1,288 to $1,324.
Retirees will see a more significant adjustment to their maximum out-of-pocket expenses.
- Group A Retirees (Select): The cap increases from $4,261 to $4,381.
- Group B Retirees: The cap increases from $4,509 to $4,635.
These changes underscore the importance for military families and retirees to review their healthcare needs and budgets ahead of the upcoming open enrollment period. Understanding which plan offers the best value based on expected medical usage is crucial for managing these rising costs effectively.
