TRICARE Young Adult Premiums to Rise by an Average 11% in 2027

Military families with young adult dependents enrolled in TRICARE Young Adult (TYA) will face higher monthly premiums in 2027. Costs for Prime will rise to $893, while Select will cost $394 starting January 1, 2027.

The new rates bring annual premium costs to $10,716 for Prime and $4,728 for Select, before other healthcare expenses. The latest adjustment continues a longer trend of rising TYA premiums, which has raised questions about affordability for military-connected young adults who age out of regular dependent TRICARE.

How Much Will TRICARE Young Adult Cost in 2027?

The average increase across the two plans is 10.5%, or approximately 11%. Prime premiums will rise by 12.5%, while Select premiums will increase by 8.5%. Compared with 2026, beneficiaries will pay an additional $1,188 for Prime or $372 for Select. These figures cover premiums only and do not include deductibles, copayments, or cost-shares.

Federal law requires TYA premiums to cover the full cost of healthcare benefits provided to enrolled young adults. The number of people enrolled and their use of healthcare services can affect the rates.

According to figures reported by Federal News Network, Prime had nearly 1,300 enrollees as of September 2026, compared with approximately 27,600 in Select. DHA officials said Prime's smaller enrollment pool and high number of healthcare encounters contribute to its higher premiums.

When asked about the specific changes in healthcare costs or utilization that led to Prime's 12.5% increase compared with Select's 8.5% increase, DHA officials explained:

"Title 10, United States Code, established in 2011 that TYA Premiums must cover the full cost of providing TRICARE benefits. A relatively small pool of insured population, combined with a high number of healthcare encounters, result in higher premium rates, particularly for TYA Prime. Keep in mind that TYA as a program is required by law to pay for itself."

The longer-term trend is also clear. In 2016, monthly premiums were $306 for Prime and $228 for TYA Standard, now called Select.

Between 2016 and 2027, Prime premiums rose approximately 192%, while Select increased by 73%. The monthly gap between the plans grew from $78 to $499.

Addressing the significant decline in TYA Prime enrollment since 2016, how it affects premium calculations, and whether rising premiums could cause further enrollment decreases, DHA officials stated:

"DHA does not have minimum enrollee number targets for its premium plans. They exist to support beneficiaries who have special coverage needs and who qualify per law and regulation. In the case of TYA, higher costs are most attributable to a high number of expensive healthcare encounters among the enrolled population. TYA is required by law to pay for itself."

Regarding whether additional data or guidance could help beneficiaries better understand the 2027 calculations, DHA officials added:

"Calculations are made according to the provisions of the law in Title 10, US Code, from 2011. There are no special mathematical formulas or workarounds. It is all based on number of enrollees as well as the number and cost of healthcare encounters."

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Who Is Eligible for TRICARE Young Adult?

Regular TRICARE coverage for dependent children generally ends at age 21. Unmarried children enrolled full-time at an approved institution of higher learning may remain eligible until age 23 or graduation, whichever comes first, if their sponsor provides more than half of their financial support.

After regular dependent coverage ends, eligible unmarried adult children may purchase TYA until they turn 26. They must not qualify for another TRICARE plan or be eligible for an employer-sponsored health plan through their own employment.

Some Reserve families have additional requirements. If the sponsor is a non-activated member of the Selected Reserve or Retired Reserve, they must be enrolled in TRICARE Reserve Select or TRICARE Retired Reserve.

What Are the TYA Plan Options?

The two options differ in how beneficiaries access care and pay for services.

1. TYA Prime: Beneficiaries receive care through an assigned primary care manager, who coordinates treatment and referrals to specialists. Referral and authorization requirements apply. Availability depends on the sponsor's military status and the beneficiary's location. Prime is available to children of active-duty sponsors in the United States and to command-sponsored children overseas. Children of retired sponsors may qualify if they live in a Prime Service Area. Those whose sponsors use TRICARE Reserve Select or TRICARE Retired Reserve aren't eligible for TYA Prime.
2. TYA Select: Beneficiaries can visit any TRICARE-authorized provider and generally do not need referrals for specialty care, although some services still require prior authorization. Select is available worldwide and includes an annual deductible and cost-shares.

What Military Families Should Consider Before 2027

Eileen Huck, director of government relations for the National Military Family Association (NMFA), expressed concern that the higher premiums could make TYA unaffordable for some military-connected young adults.

“We’re very concerned that the monthly premiums for TRICARE Young Adult will prove to be too expensive for many young adults and their families, leading some to go without health coverage altogether,” Huck said.

NMFA encourages families to compare other coverage options, including a parent's employer-sponsored plan, a state Health Insurance Marketplace or a college or university health plan. Medicaid may also be available to young adults who meet their state's eligibility requirements.

Huck said these alternatives do not address what NMFA sees as a broader gap between health coverage for military and civilian families.

NMFA is calling for the government to end TYA and extend regular TRICARE dependent coverage automatically to young adults through age 26. Huck explained the reasoning behind the proposal:

“Ending TRICARE Young Adult and extending TRICARE coverage automatically to young adults up to age 26 would ease the burden on families and ensure that military-connected young adults can access health care.”

Before choosing a plan, families should check whether their preferred providers are in-network and review its enrollment requirements and deadlines.

Eligible beneficiaries can purchase TYA at any time without waiting for TRICARE Open Season. Those with questions can contact their regional TRICARE contractor or a Beneficiary Counseling and Assistance Coordinator.