Listened to bad advice.
Skipped Part B for five years. Now pays a 50% penalty on top of his premium. Every month. For life. And that is if the premium never goes up.
The cost A penalty with no reset button.
Free guide · 2027 edition
2027 Medicare Comparison Guide for Veterans
VA health care, Original Medicare, TRICARE for Life and Medicare Advantage all cover a lot. Each one also leaves something out. This is the side-by-side comparison, in plain language, with the official sources named.
- 27 pagesPDF, 2.6 MB
- FreeNo cost, no obligation
- Every claim sourcedVA.gov, Medicare.gov, CMS, KFF, TRICARE
Inside the guide
What you get in the 27 pages
- 1The VA says sign upIn the VA’s own words, including what it says about funding and the permanent penalty.
- 2What each system leaves outVA health care, Original Medicare, TRICARE for Life and Part C, side by side.
- 3Three veterans. Three outcomes.Same age. Same premium. The only difference is what each one knew before 65.
- 4Which situation is yours?The rules at 65 for TRICARE for Life, CHAMPVA and VA health care.
- 5You already paid for thisThe FICA box on every pay stub, and where the other 75% comes from.
- 6Page 11 of Medicare’s handbookWhat Medicare prints in the handbook it mails to every beneficiary.
- 7When the VA told my dad noChris’s 82-year-old father, the procedure the VA denied, and what covered it.
- 8Five costly mistakesThe five that cost veterans the most money, and how to avoid each one.
- 9When to sign upThe enrollment calendar, and the two things to know before you turn 65.
- 10Talk to someone who speaks veteranWhat you get on a 15-minute call, and why it costs nothing.
The comparison
What each system leaves out
Each system covers a lot. Each one leaves something out. Here is what VA health care, Original Medicare and TRICARE for Life do not provide on their own, side by side with Part C.
| Coverage | VA health care | Original Medicare | TRICARE for Life | Part C plans* |
|---|---|---|---|---|
| Routine dental | No, unless 100% rated | No | No | Most plans |
| Routine vision & eyewear | Sometimes | No | No | Most plans |
| Routine hearing & hearing aids | Sometimes | No | No | Most plans |
| Gym membership | No | No | No | Most plans |
| Over-the-counter allowance | No | No | No | Many plans |
| Help with your Part B premium | No | No | No | Some plans |
*Part C means Medicare Advantage. Share of individual Medicare Advantage plans offering each benefit in 2026: vision 99%, dental 98%, hearing 98%, fitness 93%, over-the-counter allowance 66%, Part B premium reduction 32%. Source: KFF, Medicare Advantage 2026 Spotlight. Not every plan has every benefit, and not every county has every plan.
The gap nobody mentions
You pay 20%, and there is no yearly limit
20%you pay with Original Medicare. With no yearly limit.
With Original Medicare, “you usually pay 20% of the Medicare-approved amount after you meet your deductible.” And “there’s no yearly limit on what you pay out of pocket, unless you have supplemental coverage” or other insurance. Part C plans “have a yearly limit on what you pay for covered Medicare services.”
If you have TRICARE for Life, TRICARE for Life pays as your secondary after Medicare.
2027 Medicare & You handbook, page 11
Same age. Same premium.
Three veterans, three outcomes
Same birthday. Same $202.90 Part B premium. The only difference is what each one knew before 65.
Enrolled. Never opened the handbook.
Enrolled on time. Pays full price for Part B. Never saw Page 11. Leaves money on the table every single month.
The cost Paying full price when options exist for his Part B premium.
Used what he earned.
Enrolled on time. Read Page 11. Looked at the options in his county. Medicare Advantage working harder for him. His VA benefits did not change.
The cost Same VA. More options.
Monthly amounts use the 2026 standard Part B premium of $202.90. Veteran one: $202.90 + 50% penalty ($101.45) = $304.35. The penalty is 10% for every full 12 months you could have had Part B but did not sign up.
Which veteran are you going to be?
Find yours
The rules at 65 depend on what you have today
TRICARE for Life
Part B at 65: RequiredIf you have TRICARE for Life, you are required to have at least Medicare Part A and Part B to keep your TRICARE for Life benefit. Skip Part B and TRICARE suspends. That is not optional, that is the rule.
Good to know On the first day of your 65th birthday month, TRICARE Prime or TRICARE Select transitions to TRICARE for Life. TRICARE for Life does not pay any of your Part B premium.
CHAMPVA
Part B at 65: RequiredCHAMPVA is for spouses, surviving spouses and dependents of veterans who are 100% permanently and totally disabled from a service-connected condition, or who passed away from one. If you turn 65 and are eligible for Medicare, you are required to enroll in Part A and Part B to keep your CHAMPVA benefit.
Good to know CHAMPVA then becomes your secondary coverage. Options exist for your Part B premium.
VA health care
Part B at 65: Not required. Penalty if late.Nobody in the United States is required to enroll in Medicare. Not you, not any veteran, not anyone at 100% Permanent and Total. But Part B has a late enrollment penalty: 10% for every full 12 months you delay past your Initial Enrollment Period. That penalty is permanent.
Good to know Medicare is not allowed to affect your VA health care or your VA disability compensation in any way. They stay exactly the same.
You already paid for this
Medicare is not a bill. It is a benefit you earned.
You remember the FICA box on your pay stubs? Every paycheck. Military service, civilian jobs, it did not matter. FICA came out.
$58,000
paid into Medicare through FICA by a veteran earning $50,000 a year over a 40-year career. If you earned more, you paid more.
~75%
of Medicare Part B is paid by the federal government’s general fund, funded by the federal income taxes you paid your entire career.
~$7,300
a year, roughly, in federal subsidy for every Part B beneficiary paying the standard premium.
$202.90
your share. The 2026 standard Part B premium, about 25% of what Part B costs.
Sources: Social Security Act §1839 (42 U.S.C. §1395r), which sets the standard Part B premium at about 25% of program cost; CMS, 2026 Medicare Parts A & B Premiums and Deductibles, November 14, 2025. FICA estimate: 2.9% combined Medicare tax on $50,000 a year for 40 years.
You earned both. Skipping Part B means walking away from a benefit you already bought and paid for twice over. More on where the 75% comes from →
Not our words. Medicare’s.
What Medicare’s own handbook says about your Part B premium
“some plans may have a $0 premium and may help pay all or part of your Part B premium.”
“$0 premium”
Medicare rules allow Part C plans to have premiums as low as $0 per month. But to be eligible for Part C you must have Medicare Part A and Part B. You cannot skip Part B and get Part C. Part A and Part B are the foundation.
“All or part of your Part B premium”
Right now $202.90 comes out of your Social Security check every single month. If the Part C plan in your county has this benefit, less comes out. Not drawing Social Security yet? Then you get a quarterly bill, and the same thing applies.
98%of people with Medicare can choose a Part C plan with drug coverage and no extra premium (2026)
28Part C plans with drug coverage, on average, for each beneficiary in 2027
Sources: KFF, Medicare Advantage 2026 Spotlight (December 2025); KFF, The Average Medicare Beneficiary has 28 Medicare Advantage Prescription Drug Plan Options for 2027 (October 1, 2026).
Your county may or may not have a Medicare plan that will help pay your Part B premium. We look it up for every veteran individually. Page 11 explained in full →
Fix these before they cost you
Five costly mistakes veterans make
Skipping Part B because you have the VA
VA health care does not count for Part B. Wait too long and the 10% penalty is yours for life.
Buying Medigap when you have TRICARE for Life
TRICARE for Life already pays your deductibles, copays and coinsurance. A Medigap plan can run $125 to $300 a month for coverage you already have.
Letting Part B lapse with TRICARE for Life
No Part B, no TRICARE for Life. Even if you move overseas.
Believing Part C hurts your military benefits
“If you enroll in a Medicare Advantage Plan, you still have Medicare.” TRICARE.mil. Your VA health care and disability compensation stay exactly the same.
Never reviewing your plan
Plans change every year. Review every fall, October 15 to December 7.
Mark your calendar
When to sign up for Medicare
Medicare has set times during the year when you sign up for a plan or switch plans.
- 7 months
Initial Enrollment Period
When you are turning 65 you have a 7-month window: the three months before your birthday month, your birthday month, and the three months after. Miss the window and the Part B penalty is for life.
- October 15 to December 7
Annual Enrollment Period
Choose a new Medicare Advantage plan or switch back to Original Medicare for the next year.
- January 1 to March 31
Open Enrollment Period
Already in a Medicare Advantage plan? Change plans once, or go back to Original Medicare.
- Year-round
Special Enrollment Periods
Specific situations only. Moving, losing other coverage, or gaining or losing Medicaid or Extra Help.
Quick reference
Medicare by the numbers
| Item | Amount | When | Note |
|---|---|---|---|
| Part B standard premium | $202.90 | per month · 2026 | 2027 projected: $209.50 (Medicare Trustees) |
| Part B deductible | $283 | per year · 2026 | |
| Part A hospital deductible | $1,736 | per benefit period · 2026 | |
| Part A premium, about 99% of people | $0 | most beneficiaries | |
| Part D out-of-pocket cap | $2,400 | 2027 | $2,100 in 2026 |
| Part B late penalty | 10% | for every full 12 months late, for life | |
| IRMAA starts above $109,000 single / $218,000 joint | $284.10+ | per month · 2026 | 2026 IRMAA is based on 2024 tax returns |
Sources: CMS, 2026 Medicare Parts A & B Premiums and Deductibles, November 14, 2025; 2026 Medicare Trustees Report; CMS 2027 Part D parameters. CMS announces 2027 Part A and Part B amounts in November 2026.
Go deeper
The guide gives you the map. These go street by street.
The guide covers ten subjects in 27 pages. We already publish longer articles on most of them, with the same sources. Start here for the ones that apply to you.
- Page 11 of Medicare’s handbook, explainedThe sentence on Page 11, what “$0 premium” and “all or part of your Part B premium” mean, and why Part A and B are the foundation.
- What the VA says about signing up at 100% disabledThe VA’s own words on whether to sign up at 65, even with a full disability rating and full VA care.
- How the Part B penalty is calculatedThe 10% rule, how it compounds, and why it lasts for as long as you have Part B.
- The 75% you already paid forWhere the federal subsidy comes from, and why Part B is a benefit you bought rather than a bill you owe.
- TRICARE for Life requires Part BWhy Part B is not optional with TRICARE for Life, and what happens if it lapses.
- Does VA coverage count as creditable coverage?VA prescription coverage counts for Part D. VA health care does not count for Part B.
- Do you need other insurance if you have VA benefits?What VA coverage leaves out, and when a second layer of coverage is worth it.
- Why $202.90 comes out of your Social SecurityHow the Part B premium is taken, what happens before Social Security starts, and the quarterly bill.
- Veterans Medicare questions, answered straightThe questions veterans ask most, answered plainly and linked to the official sources.
- Medicare for Veterans: The Complete Field GuideChris Duncan’s full book. Read it free online, chapter by chapter.
Want the guide emailed to you?
Call 888-960-VETS (8387) or book a free 15-minute call and we will email you the PDF, or just use the download button above. No cost, no obligation.
Talk to someone who speaks veteran
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Take it with you
Download the 2027 guide
27 pages, 2.6 MB, free. Keep it, print it, or send it to your spouse. On a phone you can tap any line to jump to that section and tap the red button on any page to call.
Sources
- VA.gov. “VA health care and other insurance.” www.va.gov
- Medicare.gov. “Medicare & You 2027, page 11.” www.medicare.gov
- CMS. “2026 Medicare Parts A & B Premiums and Deductibles, November 14, 2025.” www.cms.gov
- Social Security Act. “§1839 (42 U.S.C. §1395r), standard Part B premium at about 25% of program cost.” www.ssa.gov
- KFF. “Medicare Advantage 2026 Spotlight: A First Look at Plan Premiums and Benefits, December 2025.” www.kff.org
- KFF. “The Average Medicare Beneficiary has 28 Medicare Advantage Prescription Drug Plan Options for 2027, October 1, 2026.” www.kff.org
- TRICARE. “TRICARE For Life.” tricare.mil
- TRICARE Newsroom. “4 reminders about getting care with TRICARE For Life.” newsroom.tricare.mil
- CMS. “2026 Medicare Trustees Report.” www.cms.gov
Sources checked October 23, 2026. Dollar amounts are 2026 amounts unless noted. CMS announces 2027 Part A and Part B amounts in November 2026.
I am not affiliated with or endorsed by Social Security, Medicare, the VA, TRICARE or any government agency. This is general education, not personal advice, and it does not recommend any specific plan. Benefits and costs vary by county and plan. Enrollment may be limited to specific times of the year unless you qualify for a Special Enrollment Period. Always review your own situation with Social Security, the VA, Medicare, or a professional you trust before making changes. Medicare is not allowed to affect your VA health care or your VA disability compensation in any way. We Speak Veteran® is a brand of Veterans Advantage Financial®.