Active-duty family members, retirees and their eligible family members who live in Atlanta or Tampa, Florida, will have a new option for health care next year: Tricare Prime managed by CareSource Military and Veterans.
The nonprofit organization was awarded a contract in 2024 to run a three-year demonstration project to provide Tricare Prime, the Defense Department’s managed care-style health program, to more than 146,000 eligible beneficiaries in the two cities, beginning in 2026.
The new agreement, which will run through 2029, gives another health care option for military beneficiaries and allows the Defense Health Agency to evaluate having other health care entities manage portions of the Tricare patient load alongside Humana Government Business, which holds the Tricare East Region contract.
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“Tricare Prime Atlanta and Tricare Prime Tampa represent an innovative approach to advance access to care, enhance the patient experience, and strive for better health outcomes,” Dr. David Krulak, director of the Tricare Health Plan at the DHA, said in a statement May 7. “The data we get from this demonstration will inform future Tricare innovations nationwide.”
Atlanta previously served as a test bed for a three-year Tricare Prime pilot run by Humana and Kaiser Permanente, the nonprofit considered to be a pioneer in health maintenance organization programs.
That program, which ended in 2022, sought to determine whether the DHA could provide “value-based care” — a health system that pays providers based on performance, quality and value as opposed to volume.
Atlanta was home to the Army’s Fort McPherson until 2011 when it was closed as part of the Pentagon’s 2005 Base Realignment and Closure effort. When it closed, nearly 30,000 military retirees and their families lived in the area, and Georgia has become an increasingly popular retirement state for military personnel.
Tampa is the home of U.S. Central Command and MacDill Air Force Base, with roughly 34,000 military dependents and 133,000 retirees, according to Defense Department data.
Interested patients will be able to enroll in the new Tricare Prime option during open season, which runs from early November through early December. During open season, beneficiaries can switch between Tricare programs such as Prime or Select or unique plans offered in various locations.
CareSource is a managed-care and health insurance organization that provides programs and services to 2 million people. After receiving the Tricare Prime program contract last November, the company’s chief executive officer said the new programs are intended to increase access to care for Tricare Prime beneficiaries and provide personalized support.
“We are honored to be entrusted with this vital responsibility,” CareSource CEO Erhardt Preitauer said in a statement. “Our team is dedicated to delivering a health plan that will provide military families with access to high-quality care that is uniquely tailored to their needs.”
Families of active-duty personnel who use Tricare Prime pay no annual enrollment fees, cost-shares or copayments. Retirees and their family members on Tricare Prime pay an annual enrollment fee, which, for most retirees, was $372 for an individual and $744 for a family in 2025.
Those beneficiaries also pay a $25 copay for a primary care visit, $38 per specialty care or urgent care visit, and $77 for an emergency room visit.
Defense Department spokesman Peter Graves said that the new programs are in addition to the Tricare health care programs already available in both cities, including existing military treatment facilities as well as Tricare Prime and Select managed by Humana.
Tricare Prime is not available to retirees and family members ages 65 and older who use Tricare For Life and Medicare.
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