MOAA’s TRICARE Toolkit provides insight and tips for navigating your TRICARE benefits. Have a question or suggestion for an upcoming column? Email beninfo@moaa.org. Read other TRICARE Toolkit columns at MOAA.org/tricaretoolkit.

Using a Health Care Flexible Spending Account (HCFSA) alongside TRICARE benefits can help military members and retirees save money on their family’s health care costs.

Some civilian employers, including the federal government, offer flexible spending accounts. As of March 2025, DoD opened up an HCFSA program for military members.

[RELATED: Should You Contribute to a Flexible Spending Account?]

An HCFSA is a tax-advantaged account that allows employees to set aside pretax dollars to cover eligible health care expenses. Contributions are made via payroll deductions and are not applicable to federal income, Medicare, and Social Security taxes. Flexible spending account contributions may also be excluded from state taxation.

HCFSAs can complement TRICARE by covering out-of-pocket expenses such as deductibles and copayments. You can also use an FSA to pay for vision care, dental expenses, some over-the-counter medications, and eligible treatments not covered by TRICARE.

If your employer offers an HCFSA, there are several steps you can take to make sure you get the most of this valuable benefit. First, familiarize yourself with the full list of eligible expenses under IRS guidelines and the rules for your specific account.

Then, review your family’s medical, dental, and vision expenses from the past year to estimate how much to contribute. Consider whether you will have any changes in expenses during the next year, such as orthodontics or a new pregnancy.

[RELATED: DoD Expands Eligibility for Flexible Spending Accounts to Some Guard Members]

During the year, keep receipts and documentation of eligible expenses. You might have a debit card tied to your flexible spending account, or you might have to submit for reimbursement. If the expense is eligible, you’ll pay for those expenses with tax-free money.

Contributions to HCFSAs must be used within the calendar year, although some plans have a limited grace period into the next year. Unused funds are
forfeited.

You will be able to update your HCFSA contribution amount every year, within your plan’s rules. Certain qualifying life events, such as marriage, might allow for midyear adjustments.