Leaving military service is one of the most disorienting health-insurance transitions in the American system. TRICARE covers roughly 9.6 million service members and their families, and most have never had to shop for civilian coverage before. The clock starts the moment you separate: TRICARE ends at 11:59 PM on your last official duty day, per tricare.mil. What happens next depends on whether you qualify for TAMP, whether your income qualifies for ACA subsidies or Medicaid, and whether VA health care is a realistic option for your situation. The 60-day Special Enrollment Period triggered by loss of TRICARE coverage is the same qualifying life event mechanism used by anyone losing employer-sponsored health insurance under ACA Section 1311(c)(6). The window is real, the deadline is hard, and the options are more affordable than most separating service members expect.
Three paths exist for replacing TRICARE in 2026. First, TAMP gives some separating service members 180 days of free transitional TRICARE coverage, but eligibility is limited to involuntary separations and specific qualifying categories. Second, the ACA Marketplace 60-day SEP window is available to all separating service members, and after a drop in income from military pay, most qualify for substantial premium tax credits that make Marketplace Silver plans far cheaper than CHCBP. Third, VA health care is year-round and does not require a qualifying life event, but access depends on your disability rating, service history, and income. Understanding which path applies to you, and acting within the 60-day window, is the single most important financial decision you will make in your first weeks as a civilian. The Medicaid income limits that income-gate the subsidy decision are covered in detail below. For general ACA subsidy income limits, see the ACA income limits guide at coveredusa.org.
7 Steps to Get Coverage
Common Mistakes That Cost People Thousands
The most expensive mistakes veterans and separating service members make when transitioning off TRICARE:
- Defaulting to CHCBP without comparing Marketplace plans. CHCBP costs $8,412 per year for individual coverage in 2026. Most separating service members with a drop in income qualify for ACA Marketplace Silver plans that cost $50 to $200 per month after premium tax credits.
- Missing the 60-day SEP window. Without enrolling during the TRICARE-loss SEP, you are uninsured or must wait until the next ACA Open Enrollment in November 2026 for January 2027 coverage.
- Including military BAH and BAS in income estimates. Basic Allowance for Housing and Basic Allowance for Subsistence are non-taxable military allowances. They do not count as MAGI for ACA subsidy or Medicaid eligibility once your service ends. Counting them inflates your income estimate and may cause you to miss a Medicaid or subsidy threshold.
- Not checking VA health care eligibility. Veterans who served in a combat theater after November 11, 1998 and were discharged after September 11, 2001 qualify for up to 10 years of enhanced VA benefits at no cost. Many separating veterans skip VA enrollment and pay for coverage they would otherwise receive free.
- Assuming TAMP applies automatically. TAMP is not available to all separating service members. Voluntary separations under most circumstances do not qualify. Verify TAMP eligibility with your unit transition assistance program before assuming 180-day coverage.
- Forgetting to update DEERS records and enroll children in CHIP. Children may qualify for CHIP at incomes up to 200 to 300% FPL depending on the state, even if you do not qualify for Medicaid yourself. CHIP enrollment is year-round and premiums are very low or free.
CHCBP vs ACA Marketplace vs VA: Which Coverage Should You Choose After TRICARE?
Separating from active duty in 2026 opens three primary pathways beyond TRICARE. CHCBP preserves your TRICARE Select-equivalent coverage at 100% of the full premium plus a 2% administrative fee, administered by Humana Military. For 2026 that means $2,103 per quarter ($701/month) for an individual or $5,339 per quarter ($1,780/month) for a family. CHCBP is rarely the cheapest option once Marketplace subsidies are factored in, and it terminates after 18 months (36 months for certain family members after divorce or death of sponsor). ACA Marketplace plans drop most transitioning service members to $10 to $300 per month after premium tax credits per the 2026 KFF Marketplace Premium Snapshot, with the trade-off that you may need to change providers if your previous TRICARE-network physicians are not in the Marketplace plan's network.
VA health care stands apart from both CHCBP and the Marketplace because it does not require a qualifying life event and has no enrollment deadline for most veterans. Veterans assigned to Priority Groups 1 through 6 receive care at little to no cost; those in Priority Groups 7 and 8 may have income-based copays. The PACT Act of 2022 dramatically expanded VA eligibility for veterans exposed to burn pits, Agent Orange, and other toxic substances, so many veterans who assumed they did not qualify now do. The decision matrix for 2026 is: Medicaid first (free, year-round, if projected income is under 138% FPL); then VA health care (if eligible, use it for service-connected conditions at minimum); then Marketplace with premium tax credits (the most common path for separating service members with civilian income); CHCBP only as a bridge for ongoing treatment mid-course with a TRICARE-network specialist not available through any Marketplace plan.
Documents You Will Need to Enroll After Leaving Military Service
The DD-214 Certificate of Release or Discharge from Active Duty is the single most important document for post-military health coverage. Healthcare.gov accepts a copy of your DD-214 or a TRICARE termination notice as proof of the qualifying life event for the ACA Marketplace SEP. For VA health care enrollment at va.gov/health-care/apply, you will need your DD-214 plus information on any service-connected conditions and prior VA claims. For CHCBP enrollment, you submit DD Form 2837 along with your first quarterly premium payment mailed to Humana Military. For Medicaid applications, you will need proof of identity, proof of state residency, and your Social Security number. Processing times vary: Marketplace coverage typically begins the first day of the month following enrollment; VA enrollment processing takes 7 to 10 business days on average but can take longer for PACT Act claims.
- DD-214 Certificate of Release or Discharge from Active Duty (primary proof of qualifying life event)
- TRICARE termination notice or separation orders (alternate SEP documentation for healthcare.gov)
- Social Security numbers for everyone applying (yourself plus all dependents)
- Current address and ZIP code (for plan availability check)
- Proof of projected 2026 income (most recent LES or civilian offer letter if available)
- DD Form 2837 (for CHCBP enrollment via Humana Military)
- Birth certificates for dependents being added to civilian coverage
Medicaid Eligibility After Leaving Military Service in 2026
Leaving military service often triggers Medicaid eligibility that did not exist while on active duty, because military base pay that previously pushed income above the Medicaid threshold ends at separation. Medicaid is income-gated at 138% of the Federal Poverty Level in the 40 expansion states plus DC. For 2026 that means $22,025 for a single person or $45,540 for a family of 4 per HHS ASPE 2026 Poverty Guidelines. State Medicaid programs go by different names depending on where you settle after separation: California's Medi-Cal, Arizona's AHCCCS, Wisconsin's BadgerCare, Massachusetts's MassHealth, Connecticut's HUSKY Health, Washington's Apple Health, Oregon's OHP (Oregon Health Plan). The 10 non-expansion states (Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, Wyoming) have much stricter income limits, typically below 100% FPL for non-disabled adults, which can leave a coverage gap. If you land in a non-expansion state with low income, a $0-premium Bronze Marketplace plan may be available, and you should check the ACA income limits page at coveredusa.org for the exact 2026 thresholds. Medicaid enrollment is year-round with no qualifying event required.
TRICARE Reserve Select After Separation: Guard and Reserve Option
Service members who transition directly from active duty to the National Guard or Selected Reserve the day after separation may be eligible to purchase TRICARE Reserve Select (TRS) rather than entering the civilian insurance market at all. TRS provides TRICARE Select-equivalent coverage at group rates substantially below CHCBP individual pricing. To qualify, you must join the Guard or Reserve immediately upon separation (the day after). TRS enrollment deadlines follow the TRICARE qualifying life event 90-day window. If you are considering a Guard or Reserve career post-separation, evaluate TRS alongside Marketplace plans and CHCBP before your separation date. Many Reserve and Guard members also qualify for the ACA Marketplace 60-day SEP window if TRS does not work out, since any gap in coverage triggers a separate qualifying event.
Frequently Asked Questions
When exactly does my TRICARE coverage end when I leave the military?
TRICARE ends at 11:59 PM on your last official duty day per tricare.mil. This is the date your separation orders specify as your release from active duty. Terminal leave does not extend your TRICARE end date; you continue receiving active duty TRICARE benefits during terminal leave, but those end on the last day of terminal leave when you formally separate. Your 60-day ACA Marketplace Special Enrollment Period begins the day after that date.
What is the SEP window for losing TRICARE after military separation?
You have 60 days from the date you lose TRICARE coverage to enroll in an ACA Marketplace plan under the loss-of-coverage Special Enrollment Period. For example, if your TRICARE ends September 30, 2026, your SEP window closes November 29, 2026. If you qualify for TAMP (180-day free transitional TRICARE), the 60-day Marketplace SEP clock starts when TAMP ends, not on your separation date. Medicaid has no deadline and can be applied for year-round.
Is CHCBP worth it after leaving the military in 2026?
Rarely. CHCBP charges 100% of the full TRICARE Select premium plus a 2% administrative fee. In 2026 that is $2,103 per quarter ($701 per month) for an individual or $5,339 per quarter ($1,780 per month) for a family, per tricare.mil. ACA Marketplace plans with premium tax credits are almost always cheaper for separating service members whose civilian income is below 400% FPL ($63,840 for a single person in 2026). CHCBP makes sense only if you are actively mid-treatment with a specific provider who is not available in any Marketplace plan network, or if you need the full six weeks of CHCBP to finalize a critical procedure.
How do I document my TRICARE loss for the ACA Marketplace SEP?
Upload your DD-214 Certificate of Release or Discharge from Active Duty to healthcare.gov as proof of the qualifying life event. If your DD-214 has not yet been issued, a TRICARE termination notice, separation orders, or a letter from your unit confirming your separation date are also accepted. You typically have 30 days after selecting a Marketplace plan to submit documentation. Keep a copy of your separation orders and TRICARE end-date confirmation from DEERS.
Do I qualify for VA health care after leaving the military?
Most veterans who served on active duty and received an honorable or general discharge qualify for at least some VA health care. Veterans who served in a combat theater after November 11, 1998 and were discharged after September 11, 2001 qualify for enhanced benefits for 10 years post-discharge at no cost. The PACT Act of 2022 expanded eligibility further for veterans exposed to burn pits, Agent Orange, and other toxic substances. Apply at va.gov/health-care/apply. VA health care does not replace civilian insurance for all conditions but can dramatically reduce out-of-pocket costs for service-connected conditions.
What happens to my children's coverage when I leave the military?
Your children lose TRICARE eligibility when your active duty TRICARE ends. Children may qualify for CHIP at household incomes up to 200 to 300% FPL depending on your state, even if you do not qualify for Medicaid yourself. CHIP enrollment is year-round with no qualifying event required. If your income is above CHIP limits, enroll children in a Marketplace family plan under the TRICARE-loss 60-day SEP. Update your DEERS record within 60 days of separation so family members are properly removed from TRICARE and eligible for their new coverage.
Can I get Medicaid after leaving the military?
Yes, if your projected 2026 household income falls under 138% FPL in one of the 40 Medicaid expansion states plus DC. For 2026 that is $22,025 for a single person or $45,540 for a family of 4 per HHS ASPE 2026 Poverty Guidelines. Military base pay ends at separation and does not count as MAGI income for Medicaid eligibility once your service ends, so many veterans who were ineligible on active duty suddenly qualify. Apply through your state Medicaid agency or healthcare.gov. Medicaid enrollment is year-round with no deadline.
What if I miss the 60-day Special Enrollment Period after losing TRICARE?
If you miss the 60-day loss-of-coverage SEP without enrolling in a Marketplace plan, you typically have to wait until the next ACA Open Enrollment Period, which runs November 1 through January 15 each year, for January coverage. For 2026 coverage the OEP already passed; the next OEP (November 1, 2026 through January 15, 2027) is the earliest chance to enroll for 2027 coverage. Medicaid enrollment is always open regardless of SEP windows. VA health care enrollment has no SEP requirement. CHCBP must also be purchased within 60 days of TRICARE loss, so that option closes too if you wait.
