Unlock Your Health Benefits: DOD Introduces Flexible Spending Accounts for Service Members

Enrollment for the new Health Care Flexible Spending Account (HCFSA) opens from March 3-31, 2025. Service members can set aside up to $3,300 from their pretax earnings each year for qualifying health care costs.

A Health Care Flexible Spending Account is a valuable benefit, allowing service members and their families to use pretax money for eligible medical, dental, and vision expenses. Ronald T. Garner, the assistant director of military compensation policy at the Defense Department, explains that married service members can have two separate accounts, letting them contribute up to $6,600 in total.

Eligibility for the HCFSA includes active duty component service members, reservists, and National Guardsmen on Active Guard Reserve duty, as well as U.S. Coast Guard Reservists on active duty for over 180 days. This program has been available to federal civilian employees and many private sector workers, but it’s a new opportunity for service members.

Garner emphasizes that while TRICARE offers extensive coverage, it doesn’t handle every expense. An HCFSA could be especially handy for covering those unexpected costs. For example, if a child falls ill suddenly, parents often need to purchase medicine immediately rather than waiting for a doctor’s visit. An HCFSA can help cover these urgent costs.

Before enrolling, service members should assess their healthcare spending to determine if contributing to an HCFSA makes sense for them. Those with significant medical expenses, especially families with members in the Exceptional Family Member Program, may find this benefit particularly helpful.

Generally, HCFSA enrollment occurs during the Federal Benefits Open Season from mid-November to mid-December. However, the upcoming special enrollment from March 3-31 provides a chance to sign up early. Additionally, life events like deployment, marriage, or the birth of a child also allow for enrollment outside of the typical season.

According to the Department of Defense’s 2023 Demographics Profile, around 46.7% of service members are married, and 36.7% have dependent children. Ensuring that families are financially secure supports the overall readiness of the military force. Garner notes that when service members worry less about their families’ financial situations, they can focus more on their missions.

Using an HCFSA can lower a service member’s taxable income, which might leave more money available for other needs. This added financial confidence helps military families feel secure and supported.

Garner emphasizes the importance of taking care of service members and their families, stating that it not only benefits their missions but also contributes positively to the nation. Before enrolling in an HCFSA, service members should consult with a military tax expert or a personal financial counselor. These resources are available at no cost and can help navigate the benefits of the account.