Under the Federal Flexible Spending Account Program (FSAFEDS), a Health Care Flexible Spending Account (HCFSA) is offered to qualified service members as an option to set aside pretax earnings to help pay for health care costs.

A HCFSA is a pre-tax benefit account that is used to pay for eligible medical, dental, and vision care expenses - those not covered by your health care plan or elsewhere. HCFSA is a smart, simple way to save money while keeping you and your family healthy and protected. If you re-enroll in FSAFEDS during Open Season, you can carry over up to $660.00 remaining in your account from one plan year to the next, so there is no "use or lose" risk.

The Special Enrollment Period is from March 3 to March 31, 2025. During this Special Enrollment period you can contribute anywhere between $100 and $3,300 to your HCFSA. To enroll during this time, go to https://www.fsafeds.gov/, and follow these instructions:

1. Select “Qualifying Life Event” from the Enroll dropdown menu.
2. Select the QLE titled “Special Enrollment Period for Members of the Uniformed Services March 3-31.”
3. Enter the date you are enrolling as your QLE event date.
4. Follow the remaining instructions.

After March 31, eligible service members may only enroll in an HCFSA during Federal Benefits Open Season through FSAFEDS. However, there are some life circumstances, called QLEs, that allow you to change your election throughout the calendar year.

Note: Your TRICARE benefit is separate from an HCFSA. Just because you have TRICARE does not mean you are automatically enrolled in an HCFSA.

Army National Guard Service members on Federal Active Duty are eligible to enroll in a Health Care Flexible Spending Account.

A Health Care Flexible Spending Account can help service members in the following ways:

Tax Savings

When a service member enrolls in a HCFSA, they can elect to have a portion of their earnings deducted before taxes are taken out. This means the money that is contributed is not subject to federal income tax, state income tax (in most states) or Social Security and Medicare taxes. By contributing to an HCFSA, your taxable income is reduced, this can lower the amount of income tax you owe.

Budgeting for Known Expenses

Health care flexible spending account contributions are deducted automatically from your paycheck before taxes, making it a convenient way to set aside funds for health care expenses that are not covered by your health care plan. You can plan and budget for these expenses by contributing a specific amount to the HCFSA each pay period.

The Health Care FSA Savings Calculator can be used to estimate your annual, out-of-pocket health care costs, including eligible over-the-counter items, and see how much you could save by enrolling in the HCFSA.

Common Covered Expenses

Here are some common expenses that your HCFSA can cover:

• Medical: copayments, coinsurance, and deductibles
• Dental: exams, cleanings, X-rays, and braces
• Vision: exams, contact lenses and supplies, eyeglasses, and laser eye surgery
• Professional Services: physical therapy, chiropractor, and acupuncture
• Prescription drugs, insulin, and prescribed over-the-counter medicine
• Over-the-counter healthcare items: bandages, pregnancy tests, and blood pressure monitors

The IRS determines what expenses are considered eligible. You can find a complete list of eligible and ineligible expenses on https://www.fsafeds.gov/.

Reimbursement and Payment Options

With a variety of convenient reimbursement and payment options, your HCFSA makes it easy for you to get reimbursed for hundreds of eligible Health Care expenses.

Simply log in to your FSAFEDS online account at any time to manage all aspects of your Health Care FSA:

• Check account balances
• Submit claims and view claims status
• Look up eligible expenses
• Select your reimbursement methods (by check or direct deposit)
• Choose to receive account alerts by email or text

Or you can log in to your account any time with the FSAFEDs app. Just download this handy app to your mobile device and log in with the same username and password as your online account. It is the easy way to manage your FSA when on the go!

Health Care Flexible Spending Account (HCFSA):
https://www.fsafeds.gov/explore/hcfsa

https://tricare.mil/Plans/SpecialPrograms/Health-Care-Flexible-Spending-Accounts