Great news for military members and their families: you may now be eligible for an Active-Duty Health Care Flexible Spending Account (HCFSA). This exciting new benefit allows servicemembers to set aside pretax income to help cover out-of-pocket healthcare expenses, from copays and prescriptions to dental and specialty care. Take a look at the full list of all eligible expenses at FSAFEDS.gov. 

Are You Eligible? 

The HCFSA is available for regular active duty, Reserve Component members performing Active Guard Reserve Duty under Title 10, National Guard members performing Active Guard Reserve duty under Title 32, and US Coast Guard Reserve members, including Reserve Component Managers serving on active duty for more than 180 days.  

How to Contribute and Get Reimbursed 

Eligible servicemembers may contribute up to $3,300 annually for pre-tax savings. Once you sign up and select your contribution amount, the funds will be deducted monthly from your military pay at the beginning of the calendar year. It typically takes seven to 10 business days to process the funds into your account. When you incur eligible expenses, simply submit a claim through the FSAFEDS website for reimbursement. Be sure to hold on to your receipts, as you need to include them in your claim submission to receive reimbursement. 

It’s important to note that if you transition out of the military during your plan year, your HCFSA will terminate on your separation date. Claims for expenses incurred on dates prior to your separation date will be paid, but expenses incurred after your separation date will not be reimbursed, even if it was a fully funded allotment. If you know you’ll be transitioning from service, adjust contributions accordingly and plan to utilize any funds in your HCFSA prior to your separation date. If you transition from service during an HCFSA election year, you can submit changes within 60 days as a Qualifying Life Event (QLE). 

Key Benefits of the HCFSA 

The HCFSA program can reduce your taxable income and provide funds to cover copays, medications, dental care, specialty care and more. Your funds are available from January 1 to December 31, and you can carry over up to $660 to the next year as long as you re-enroll.  

Enrolling in the HCFSA 

Each year, you must enroll or re-enroll during Open Benefits Season (mid-November to mid-December) in the HCFSA program on FSAFEDS. Remember, you must be prepared to use the funds you set aside during the program’s calendar year so you don’t lose them. Don’t miss this opportunity to take control of your family’s health care expenses while saving money!  

We’re Here to Help 

Armed Forces Mutual proudly offers information and resources about available military benefits to help improve your family’s financial health. You can learn more about the HCFSA by watching our discussion, Understanding Active-Duty FSAs: Health Care vs. Dependent. 

 

 

If you have questions about your military benefits, please contact Armed Forces Mutual Member Benefits at 800-522-5221 or email [email protected].