Registration for the new flexible healthcare expenditure service provides health care from March 3 to 31, 2025. Service members can register and put up to $ 3,300 in profits before tax in an account each year, which can be spent for eligible health costs.
“A flexible health care expenditure account is an optional advantage that allows soldiers and their families to use before tax benefits to pay health, dental and dental care and vision costs,” said Ronald T. Garner, deputy director of the military remuneration policy in the Ministry of Defense.
Garner said that the members of the wedding service who are both eligible for an HCFSA can maintain two separate accounts and contribute up to $ 6,600 each year.
The members of the component service, reservists and national guards in the active reserve service and the members of the American Coast Guard reserve in active service for more than 180 days are all eligible to participate.
HCFSA is already available for federal civilian employees and for many in the private sector, but it is now only available for service members. Garner said it was something on which the department has been working on for some time. Tricare, he said, is an extensive program, but cannot cover everything, and in some cases, HCFSA can help.
“No health care, no health insurance program will cover all costs, and many costs are unpredictable,” he said. “For example, if your child falls ill in the middle of the night, you don’t wait until you can go see a doctor to get cold medicines. You will go to the local pharmacy and take medication against cold and bring him back so that you can take care of your child. It is a cost that will be covered by HCFSA.”
Eligible service members should close their own financial situation closely and how much they expect to spend every year for health costs before deciding to contribute, he said, adding that some soldiers are more likely to benefit from HCFSA than others.
“I would say that, according to my experience, it will be really precious for the families of the military,” he said. “For example, I think there will be a lot of value for those who have family members who are part of the exceptional family members’ program. I think these families tend to lead to a lot of expenses and often unforeseen expenses that others do not do. I think that a program like this will be particularly beneficial for this group of members of the service and their families.”
As a rule, registration for programs like an HCFSA only occurs during the open season of federal advantages, which takes place from mid-November to mid-December. With the announcement of the new HCFSA service for members of the service, a special registration period is available from March 3 to 31, 2025.
At other times of the year, said Garner, a range of skilled life events will also allow soldiers who are not already registered with an HCFSA to register outside the typical open season. Some of these events that change life include deployment, permanent change in station, marriage or the birth of a child, he said.
According to the “demographic profile of 2023 of the military community” of the DOD, around 46.7% of the members of the service are married and around 36.7% of the members of the service have dependent children. For these members, ensuring that their families are taken care of and that their financial situation is in the square is something that contributes to military preparation, said Garner.
“When families are more financial security, the strength is more ready and more deadly,” he said. “When the military must less worry about the well-being of their families and their financial well-being, they focus more on the mission. And I think that can only benefit the organization.”
The use of an HCFSA, for some soldiers, reduces global taxable income, putting more money in their pockets to spend in other areas, Garner said. And this means that these military families will be more confident than they are taken care of.
“These men and women have given part of their lives to serve their country and serve their fellow citizens, and I think that certainly deserves recognition,” said Garner. “We become better when we care about the well-being of our soldiers, not only because of its impact on the mission, but because of its impact on the nation and on these members of the service and their families.”
Before registering for HCFSA, Service members should speak with a military tax expert,, Dod Personal Financial ManagerOr Personal financial advisor to learn to take advantage of the account and How will it benefit them. These services are available free of charge for members of the service.