Caesar,
I was told they same thing as well on my out processing only to find out later that it was not a true statement. Give the great people at DEERS a call and see if they have changed your status from Active Duty to Reserve yet? If they haven't you're still getting Medical coverage. (800-538-9552) I'm kinda in the same boat until I start training as well in August and my wife is going to pickle in the middle of July.(Great planning on our part) So, just to keep things somewhat reliable we might end up paying the 1,996 for the TRICARE continuation care.