A Health Care Flexible Savings Account (HCFSA) is a pre-tax benefit that helps eligible military servicemembers and their families save money on out-of-pocket healthcare expenses. As healthcare costs continue to rise, an HCFSA can make budgeting for medical expenses more manageable by allowing you to set aside tax-free funds for qualified care not covered by TRICARE.
To help with these expenses, eligible active component servicemembers and members of the Active Guard Reserve on Title 10 orders may enroll in a Health Care Flexible Savings Account (HCFSA). This pretax account allows you to set money aside from your paycheck to pay for healthcare expenses not covered by TRICARE. Eligible out-of-pocket expenses can include co-pays for prescriptions and healthcare visits, medical supplies, orthodontia, vision care (such as contact lenses and eyeglasses), and in vitro fertilization (IVF).
Eligible out-of-pocket expenses can include a wide range of healthcare costs, such as:
HCFSA benefits include tax savings, greater affordability for out-of-pocket healthcare, and convenience.
Money contributed to a Health Care Flexible Savings Account is not subject to:
This can help lower your overall taxable income. Contributions are deducted automatically from your paycheck before taxes.
Eligible participants may contribute between $100 and $3,200 per year per individual toward their HCFSA.
Key things to know about contributions:
Paperless reimbursement is not currently available for military HCFSA participants. Receipts and claims must be submitted manually through the FSAFEDS mobile app, online, or by mail or fax.
Eligible servicemembers may enroll in an HCFSA during Open Season or during a qualifying special enrollment period.
By taking advantage of this account, you could potentially save an average of 30 percent on eligible unreimbursed healthcare expenses, depending on your individual tax situation. Actual savings will vary.
For personalized guidance, consider contacting a military tax professional.
For more information about Health Care Flexible Savings Accounts, and to calculate your potential savings, visit fsafeds.gov/explore/hcfsa or contact Armed Forces Mutual's Member Benefits at 800-522-5221 or memberbenefits@aafmaa.com.