Last Updated: August 24, 2026 Reading Time: 8 min

TRICARE Open Season for 2027 coverage runs November 9 through December 8, 2026, and if you're a military retiree working a federal job, this window decides more than your health plan. It decides how much flexibility you keep for your second retirement. Here's the switch math, the suspend-vs-cancel trap, and the one-day deadline mismatch that can bite dual-eligible families.

The Dates, and the One-Day Trap

Date Event
October 2026 (expected) DHA publishes official 2027 TRICARE fees
November 9, 2026 TRICARE and FEHB Open Seasons both begin
December 7, 2026 FEHB Open Season closes
December 8, 2026 TRICARE Open Season closes
January 1, 2027 All elections take effect

The mismatch matters for one group: federal retirees coordinating an FEHB suspension with a TRICARE change. If you plan the TRICARE side on December 8, your FEHB window closed the day before. Do both by December 7.

What Switching Costs: The 2026 Baseline Numbers

The 2027 fee schedule lands in October. Until then, plan with the 2026 numbers (Group A means the sponsor entered service before January 1, 2018, which covers nearly all current retirees):

Plan (Group A retiree) Annual fee, individual Annual fee, family Deductible
TRICARE Prime $381.96 $765.00 $0 in-network
TRICARE Select $186.96 $375.00 $150 / $300 family

Group B (entered service 2018 or later): Prime runs $462.96 / $927, Select $594.96 / $1,191.

Prime vs Select is a provider question, not a money question. Prime is the HMO model: near-zero out-of-pocket, but you work through a primary care manager and referrals. Select is the PPO model: pick your own providers, pay modest cost-shares, with a $4,381 family catastrophic cap protecting the downside. If your family's doctors aren't in the Prime network, the few hundred dollars Select adds is usually worth it.

The Comparison Nobody Publishes: All-In Family Cost vs FEHB

For a Group A military retiree family with moderate usage, the real annual picture looks like this:

Coverage Annual cost basis All-in estimate (family, moderate use)
TRICARE Prime $765 fee + ~$456 cost-shares ~$1,221
TRICARE Select $375 fee + $300 deductible + ~$820 cost-shares ~$1,495
BCBS Basic (FEHB) $9,278 premium (employee share) $9,278 + cost-shares
Aetna Direct (FEHB) ~$7,480 premium $7,480 + cost-shares
GEHA Standard (FEHB) ~$6,018 premium $6,018 + cost-shares

That's a $5,000-to-$8,000 annual gap before FEHB cost-shares even start, and it widened after the 12.3% average FEHB premium increase for 2026. For the full plan-by-plan tradeoff, run your own numbers in our TRICARE vs FEHB comparison tool.

So why does anyone dual-eligible keep FEHB? Three legitimate reasons: provider networks TRICARE doesn't reach, the FEHB-into-retirement strategy below, and family members who lose TRICARE eligibility.

The Suspend-vs-Cancel Trap (Read This Twice)

This is the most misunderstood rule in the dual-eligible world, and it splits on one question: are you still working?

Working federal employee: You cannot suspend FEHB to use TRICARE. Your only options are keeping FEHB or canceling it. Cancellation is a real decision: you can re-enroll at a future Open Season, but if you're near retirement, gaps create risk against the requirement that you're enrolled in FEHB on your retirement date.

Federal annuitant (retired): You can suspend FEHB specifically to use TRICARE, using form RI 79-9. Suspension preserves your right to re-enroll during any future Open Season, or immediately if you involuntarily lose TRICARE. This is the flexibility play: $0 FEHB premiums while TRICARE covers you, with the FEHB safety net intact.

The 5-year rule bridge: TRICARE coverage counts toward the FEHB five-year test for carrying coverage into retirement. The standard strategy for a military retiree in federal service: use TRICARE while working, then enroll in FEHB at the last Open Season before your federal retirement date. You retire FEHB-eligible, then suspend it as an annuitant if TRICARE still makes sense. We cover the mechanics in our TRICARE vs FEHB guide for military retirees.

One more wrinkle for postal workers: PSHB replaced FEHB for USPS employees in 2025, and its suspension rules mirror FEHB's, but confirm with the PSHB program before assuming.

Your Open Season Decision Checklist

  1. October: Watch for the 2027 fee schedule at tricare.mil. Increases have tracked COLA (2-4%).
  2. Check your providers against the Prime network before defaulting to the cheaper enrollment fee. Select's flexibility is cheap insurance.
  3. If you're within 5 years of federal retirement: map your FEHB enrollment timing now. The 5-year rule rewards planning, not improvisation.
  4. If you're an annuitant on FEHB considering TRICARE: suspension via RI 79-9, not cancellation, and complete it by December 7.
  5. Age 64? Prime and Select end at 65 when TRICARE For Life takes over (with Medicare A+B). Your Open Season choice is a short-timer decision.

Compare Your Actual Costs

Use our free TRICARE vs FEHB Calculator to compare your real annual costs across both programs based on your family size and usage, and check the FEHB Calculator if you're weighing specific FEHB plans for the retirement bridge.

Frequently Asked Questions

When is TRICARE Open Season for 2027 coverage?

November 9 through December 8, 2026, effective January 1, 2027. FEHB Open Season runs November 9 through December 7, one day shorter.

Can I suspend my FEHB coverage to use TRICARE while still working?

No. Active employees can only cancel, not suspend. Suspension via RI 79-9 is annuitant-only. That's why the timing of your FEHB decisions around retirement matters so much.

Does time under TRICARE count toward the FEHB 5-year rule?

Yes, but you must be enrolled in FEHB on your actual retirement date to carry it into retirement. Plan your last-Open-Season enrollment accordingly.

How much will 2027 TRICARE fees be?

Not published yet; expect the schedule in October 2026. The 2026 baseline is $765/year for Prime family coverage (Group A) and increases have historically run 2-4%.

Is TRICARE really cheaper than FEHB for a military retiree family?

On costs, overwhelmingly: roughly $1,221 all-in for Prime family moderate use versus $9,278 in premiums alone for BCBS Basic. The real question is whether your providers are in the TRICARE network.

Sources: TRICARE Open Season, TRICARE 2026 Costs and Fees Fact Sheet, OPM FEHB/TRICARE FAQ, 5 CFR 890.807.