As a retiree enrolled in TRICARE Prime, do I still need CHAMPUS supplemental insurance?
A. That’s a personal decision that depends on your health and finances. Confer with your Health Benefits Advisor and insurer. One reason for insurance under Standard CHAMPUS (still valid if you decline TRICARE Prime) was a $323/day co-payment for inpatient care (plus 25 percent of professional fees). Co-payments are only $11/day under TRICARE Prime, but they can add up if you need long hospitalization. (TRICARE Prime caps out-of-pocket costs at $3,000 a year.) Also consider age. Many CHAMPUS policies are convertible to Medicare supplemental policies. Many retirees like to lock-in eligibility for Medicare policies by getting CHAMPUS policies before age 65. This decision involves complex calculations and some big “what-ifs.” All retirees (and families nearing retirement) should study their need for coverage. Some insurers now offer TRICARE supplemental policies.
