TRICARE to Increase Young Adult Plan Premiums in 2027
Monthly costs for military dependent coverage will rise for both Prime and Select plans starting January 1.
Updated on Oct. 21, 2026 in Military Jobs
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Starting January 1, 2027, the Defense Health Agency will increase monthly premiums for TRICARE Young Adult plans. Dependents between ages 21 and 26 will face higher costs for both Prime and Select coverage options.
Why it matters
Because TRICARE Young Adult plans receive no government subsidies, beneficiaries are responsible for the total cost of their premiums. This price adjustment could encourage dependents to seek alternative coverage through employer-sponsored insurance or Medicaid.
Monthly premiums for Young Adult Prime will rise to $893, while Young Adult Select rates will increase to $394. These rates result in total annual costs exceeding $10,700 for Prime and about $4,700 for Select plans.
The players
Defense Health Agency
This is a joint, integrated combat support agency that enables the military services to provide a medically ready force and ready medical force.
The details
The Defense Health Agency recently confirmed these new rates within its insurance program operations manual. These plans serve as a coverage option for military dependents between the ages of 21 and 26 who are no longer eligible for standard military health benefits.
Timeline
2016: Select premiums were $228 and Prime premiums were $306.
2026: The Young Adult Select deductible reached $198.
Nov. 9 to Dec. 8, 2026: The TRICARE open enrollment period.
Jan. 1, 2027: New premium rates officially take effect.
Market Landscape
The premium increase reflects the self-sustaining financial model required by the TRICARE Young Adult program statutes. This structure differentiates the program from standard military health benefits and aligns it more closely with the costs of commercial private insurance plans.
Dependents and their families should review their household budgets to accommodate these higher monthly expenses. The upcoming open enrollment period from November 9 to December 8 provides a window to evaluate whether switching to an employer-sponsored plan is more cost-effective.
The takeaway
Beneficiaries must pay the full cost of these plans without government subsidies, making price awareness essential for long-term financial planning. Consider comparing these rates against other available insurance options during the open enrollment period to ensure the most cost-effective coverage.
Further reading
Learn more about benefits and professional resources in the United States Military Jobs section.
Source note: This article includes information reported by Federal News Network.
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