Supplemental Health Insurance

Supplemental health insurance refers to private insurance policies purchased to work alongside TRICARE, covering costs that TRICARE does not fully pay, such as deductibles, copayments, cost-shares, and services not covered by TRICARE. These policies can significantly reduce out-of-pocket healthcare expenses.

Types of supplemental insurance: • TRICARE supplement policies (specifically designed for TRICARE beneficiaries) • Employer-sponsored health insurance • Medicare supplemental (Medigap) policies for TRICARE For Life beneficiaries • Accident and critical illness policies • Hospital indemnity insurance

How supplemental insurance works with TRICARE: • TRICARE pays as primary or secondary payer based on federal rules • Supplemental policy covers remaining beneficiary costs • Coordination of Benefits determines payment order • Total payments cannot exceed actual charges

When supplemental insurance is most valuable: • Retirees with higher cost-sharing obligations • Families with significant ongoing medical needs • Beneficiaries who frequently use non-network providers • Those wanting to minimize unpredictable medical expenses

Important considerations: • Supplemental policies have their own premiums and terms • Not all policies are designed to work with TRICARE • Compare coverage carefully before purchasing • Report all supplemental insurance to TRICARE through DEERS

Having supplemental insurance alongside TRICARE can provide comprehensive financial protection against healthcare costs.