VA Disability Compensation & TRICARE: How They Work Together

## Quick answer VA Disability Compensation is a tax-free monthly payment from the Department of Veterans Affairs given to veterans who became ill or injured during military service. While these payments are separate from TRICARE, receiving a disability rating often changes how you access healthcare, potentially making you eligible for both VA healthcare and TRICARE simultaneously.

*Note: TRICARE.com is an independent reference site and is not the official TRICARE program or the VA. For official policy and enrollment, visit TRICARE.mil and VA.gov.*

Details

### The Relationship Between VA Disability and TRICARE VA Disability Compensation and TRICARE are managed by different federal agencies (the VA and the Department of Defense, respectively), but they often overlap for retirees and Honorably Discharged veterans.

* **Dual Eligibility:** If you are a military retiree with a VA disability rating, you can use both TRICARE (For life, Select, or Prime) and VA healthcare. Generally, you use the VA for service-connected conditions and TRICARE for all other medical needs. * **Medical Retirement:** If you were medically retired (Chapter 61), your VA disability rating may impact your retirement pay, but you remain eligible for TRICARE as a retiree.

### Costs and Credits * **Catastrophic Caps:** TRICARE enrollment fees and out-of-pocket costs do not count toward VA spending, and vice versa. * **Copayments:** As of the 2026 plan year, if you are a "Group A" retiree (initial enlistment before 2018), your TRICARE Select enrollment fees are approximately $180–$370 per year depending on family status. Having a VA disability rating does not waive these TRICARE fees unless you are also a Medal of Honor recipient.

### CRDP and CRSC VA disability compensation is often deducted from military retirement pay (the "VA Offset"). However, two programs allow veterans to receive both: 1. **Concurrent Retirement and Disability Pay (CRDP):** For those with a 50% or higher VA rating. It restores your retired pay so you get both full VA and full retired pay. 2. **Combat-Related Special Compensation (CRSC):** For those with combat-related disabilities. You must apply through your branch of service.

### Coordination of Benefits If you have a VA disability rating and use TRICARE: * TRICARE is generally the secondary payer to most health insurance, but the **VA is not considered "Other Health Insurance" (OHI)**. * You cannot use TRICARE to pay for treatment received at a VA facility for a service-connected condition, as the VA covers that at 100%. * If you receive non-service-connected care at a VA facility, the VA may bill TRICARE as the primary payer.

## Who this affects * **Retirees:** Those receiving both a pension and VA disability. * **Medically Retired Veterans:** Personnel retired due to a service-connected disability. * **Separated Veterans:** Those who are not "retired" but have a VA rating; they are usually ineligible for TRICARE but eligible for VA care. * **Survivors:** Recipients of DIC (Dependency and Indemnity Compensation) who may also be eligible for TRICARE.

## Sources * **TRICARE.mil:** [Using the VA and TRICARE](https://www.tricare.mil/va) * **Department of Veterans Affairs:** [VA Disability Compensation](https://www.va.gov/disability/) * **Defense Health Agency:** [TRICARE Costs and Fees](https://www.tricare.mil/costs) * **TriWest Healthcare Alliance:** [Veteran Care Information](https://www.triwest.com)