Knowledge Hub
VALENTOR MIL MONTHLY BRIEF
TRICARE & COLA Updates
October 2026 Edition
BLUF: Bottom Line Up Front
This week, the implementation of the 2026 National Defense Authorization Act (NDAA) brings a significant expansion to TRICARE travel benefits and a 2.8% Cost of Living Adjustment (COLA) for veterans. While the reduction of the travel distance requirement for specialty care from 100 to 75 miles offers immediate relief for rural families, new restrictions on fertility coverage and shifting medical billet priorities require households to re-evaluate their healthcare and disability planning.
Situation Report
The newly enacted 2026 NDAA has introduced pivotal changes to the military healthcare landscape. A primary development is the reduction of the TRICARE Prime Travel Benefit threshold; active-duty service members and their families now only need to travel 75 miles, rather than the previous 100, to qualify for travel reimbursement for specialty care (FedWeek). This change is a direct response to the increasing "medical deserts" near rural installations, aiming to reduce out-of-pocket costs for families requiring advanced treatment not available at their local Military Treatment Facility (MTF).
Simultaneously, the Department of Veterans Affairs has finalized the 2.8% COLA for 2026, which took full effect this month. This adjustment increases disability compensation across the board, with 100% disabled veterans without dependents now receiving approximately $4,671 per month (Military.com). However, the 2026 budget also introduces controversial shifts in coverage, most notably a restriction on in vitro fertilization (IVF) through TRICARE. Moving forward, such services are only covered if the infertility resulted from a "serious or severe illness or injury" sustained on active duty, creating a potential financial gap for families planning for the future.
The broader fiscal environment remains dominated by the "Department of War" rebranding and a historic $1.5 trillion military budget proposal (FinancialContent). While much of this funding is earmarked for procurement and missile defense, it includes a $500 million "High-Cost Area" housing fund intended to mitigate rental spikes in volatile markets. Service members must balance these macro-level budgetary gains against micro-level shifts in benefits, ensuring they are not relying on legacy coverage that may have been phased out in the new fiscal year.
Mission Plan: Steps to Take Now
- File for travel reimbursement through the TRICARE portal if you have traveled over 75 miles for specialty care since the start of the year.
- Review your VA disability rating on the VA.gov portal to ensure your monthly deposit reflects the 2.8% COLA increase.
- Consult a TRICARE benefits coordinator if you were planning on fertility treatments this year, as the new eligibility criteria may require a private insurance supplement.
- Apply for High-Cost Area housing assistance if you are stationed in a qualifying ZIP code where the new $500 million mitigation fund is being deployed.
- Audit your MTF access to see if your local clinic is part of the new "excess capacity" initiative designed to increase veteran enrollment at active-duty facilities.
Tactical Takeaways
- The Distance Dividend: The 25-mile reduction in travel requirements is more than a convenience; it is a "tax-free raise" for families who have been self-funding trips to major medical centers.
- Inflation Lag Warning: While a 2.8% COLA is positive, it reflects trailing inflation data; ensure your emergency fund is scaled to current 2026 grocery and utility costs.
- Healthcare Self-Reliance: With shifts in IVF and specialty care, maintaining a Health Savings Account (HSA) or a dedicated "medical bucket" in your savings has never been more critical.
Call to Action
Strengthen your household financial readiness by visiting valentorfinancial.org for our updated 2026 VA Disability and TRICARE travel calculators. Understanding these nuanced changes is the first step in protecting your family's long-term wealth. For those managing a complex healthcare journey, the TKN Finance Etsy Store offers specialized medical expense trackers and military budget planners to keep your household on target.