The rule that applies everywhere overseas
Medicare generally does not pay for care outside the US and US territories. So the instinct for a retiree moving abroad is understandable: "Medicare does nothing for me here — why keep paying for Part B?" The answer is that your TRICARE eligibility depends on it. Under federal law, a Medicare-eligible TRICARE beneficiary (other than active-duty members and their families) loses TRICARE eligibility unless enrolled in Medicare Part B. Drop Part B to save money and you don't just lose Medicare — you lose TRICARE For Life, the coverage you actually use overseas.
How TRICARE For Life works overseas
- Medicare pays nothing outside the US and its territories.
- TRICARE For Life (TFL) becomes your primary payer for covered overseas care.
- You are responsible for TRICARE's annual deductible and cost-shares.
- You often pay the provider up front and file a claim for reimbursement through the overseas contractor, International SOS Government Services.
- The world is split into three TRICARE Overseas regions: Pacific (incl. Japan, Korea, Thailand, Philippines), Eurasia-Africa (incl. Germany, Italy, Spain), and Latin America & Canada.
What it costs in 2026
2026 numbers
- Medicare Part B premium: $202.90 per month for most people in 2026 (higher earners pay an income-adjusted amount) — up from $185.00 in 2025.
- Medicare Part B annual deductible: $283 in 2026.
- TRICARE For Life enrollment fee: $0. Coverage is automatic once you have Part A, Part B, and current DEERS information.
- TFL catastrophic cap (retiree families, 2026): $4,381 for Group A and $4,635 for Group B — the most you pay out of pocket for covered services in a calendar year. (Some older guides still cite a roughly $3,000 cap — that figure is out of date.)
The honest math: you pay the Part B premium every month for coverage Medicare won't use abroad — but that premium is the price of keeping TRICARE For Life, which is the coverage that actually pays overseas. For most retirees, that trade is clearly worth it.
Country-by-country guides
The core Part B rule is the same everywhere. What changes country to country is how you actually get care — whether there's a provider network, whether base hospitals are an option, whether you pay up front, and local wrinkles like Korea's National Health Insurance. Pick your country:
- Philippines →Special case: you must use a certified/preferred provider. Pay-and-file reimbursement.
- Japan →Pacific region. On-base MTFs (space-available); SOFA-stamped passport for Japanese providers.
- Germany →Eurasia-Africa region. Deepest overseas network; Landstuhl is the largest US hospital abroad.
- South Korea →Pacific region. Direct-billing hospitals; plus how TRICARE interacts with Korea's NHIS.
- Thailand →No TRICARE network and no US bases — you generally pay 100% up front and file your own claim.
More country guides (Italy, Spain, Mexico) are in progress. In the meantime, any country's specifics can be confirmed with the TRICARE Overseas contractor.
Questions almost every overseas retiree asks
Do I really lose TRICARE if I drop Part B? Yes. For Medicare-eligible retirees, TRICARE eligibility is tied to Part B enrollment. Drop it or stop paying and you lose TRICARE For Life — and re-enrolling later can trigger a permanent Part B late-enrollment penalty.
Medicare pays nothing abroad — isn't Part B a waste? Medicare itself won't pay overseas, but Part B is the requirement that keeps TFL active, and TFL does pay overseas as primary payer.
Do I need Medigap or Part D too? Generally no. TFL is the wraparound and TRICARE's pharmacy benefit is creditable coverage, so most TFL beneficiaries do not need separate Medigap or Part D.
What if I move back to the US later? In the US and its territories, Medicare pays first and TFL second again. Keeping Part B the whole time avoids a late-enrollment penalty and a gap in TRICARE.
