AUSN members, please spread the word. Active-duty service members can enroll in the Health Care Flexible Spending Account (HCFSA) program beginning March 3 and ending March 31.
This optional benefit allows qualified service personnel to use pre-tax earnings to pay for healthcare expenses. A HCFSA is a convenient and cost-effective way to help pay for out-of-pocket healthcare costs. Contributions go straight from your paycheck into your HCFSA before taxes are deducted, reducing the amount of your income that is subject to taxation.
The program complements the TRICARE health insurance program and the TRICARE Extended Care Health Option. As with these programs, a HCFSA is available to:
Members of the regular (active) component
Reserve component members performing Active Guard Reserve (AGR) duty.
National Guard members performing Active Guard Reserve (AGR) duty.
Members of the U.S. Coast Guard Reserve, including Reserve Component Managers, when performing active duty for more than 180 days.
Expenses reimbursed through a HCFSA cover a wide range of types and kinds, including:
Medical expenses – copays, cost-shares and deductibles
Dental expenses – exams, cleanings, X-rays and orthodontia (including braces)
Vision expenses – exams, contact lenses and supplies, eyeglasses and laser eye surgery
Wellness services – physical therapy, chiropractic and acupuncture
Prescription and over-the-counter medications
Over-the-counter health care items – bandages, pregnancy tests and blood pressure monitors
Participants can contribute from $100 to $3,300 per year. Spouses eligible for a HCFSA through their employers can maintain separate accounts with combined contributions totaling between $200 and $6,600 per year. (Note: Contribution limits are subject to IRS guidelines, which can vary by tax year.)
As a pre-tax program, HCFSA funding dollars are automatically deducted from a service member’s end-of-month pay before taxes are calculated. As soon as the enrollment process is completed and funding is initiated, the full amount of the chosen HCFSA contribution for that year is available.
HCFSA funds are accessed by paying for the eligible expenses, filing claims and submitting receipts for reimbursement through FSAFEDS. Reimbursement of qualified expenses continues only up to the amount the enrollee elected to contribute for the year.
All eligible expenses must occur within the calendar year, and claims must be submitted by April 30 of the following year. Based upon current IRS rules, up to $660 of unused funds can be carried over each year if a service member reenrolls in a HCFSA for the following year.
If unused funds exceed the carryover limit, that amount will be forfeited unless spent by December 31 and claimed by April 30 of the following year.
Service members also may enroll in HCFSA during the Federal Benefits Open Season, typically held mid-November through mid-December, or when they are experiencing a Qualifying Life Event (QLE), such as a change in marital status, birth of a child, permanent change of station (PCS), or deployment.
For Plan Year 2025, members of the uniformed services enroll through a Special Enrollment Period from March 3 through March 31, 2025. Once enrolled, members have between the date of their enrollment and December 31, 2025, to spend their funds.
For further information regarding the Health Care Flexible Spending Account program, and enrollment information is available at the Office of Financial Readiness website on the HCFSA Special Enrollment Period page.