A NEW HEALTH CARE SAVINGS BENEFIT IS BECOMING AVAILABLE TO TROOPS IN 2025

Making sure that our service members have access to the proper health care benefits is crucial because of all the work they put into defending the country. It is only right that they finally get another health care benefit to meet the increasing prices of medicine and even help them navigate the effects of the TRICARE policy changes.

This new program will be implemented this year, and it will show that the country is dedicated to giving back the support to those who serve first. This benefit guarantees that our troops receive the high-quality treatment they need to be healthy by improving access to vital health services.

A New Health Care Benefit for Service Members in 2025

In 2025, health care flexible spending accounts will be introduced. During a special enrollment period in March 2025, service members will be able to open health care flexible spending accounts for the first time. A health care FSA is essentially a savings account that can be used to cover expenses that are not covered by dental or health insurance. Employees of numerous federal departments and commercial businesses have had access to these accounts for many years.

With a minimum contribution of $100 per year, troops can contribute up to $3,200 in pretax wages toward qualified out-of-pocket medical costs. Over the course of the year, the funds will be automatically deducted from their salary and sent to their flexible spending account. Contribution limitations and allowable costs are set by the Internal Revenue Service.

Eligible Expenses and What to Expect

According to the Federal Flexible Spending Account Program (FSAFEDS), which will run the program, participants can save an average of 30% on qualified healthcare costs because FSA contributions aren't taxable by payroll. A calculator provided by FSAFEDS can be used to estimate possible yearly savings.

More specific information will be available to service members in March when enrollment time approaches. Troops can get ready in the meantime by compiling data on their out-of-pocket expenses during the previous 12 months.

More than 300 IRS-approved medical expenses are eligible, including copays and deductibles, the out-of-pocket cost of braces, glasses, contact lenses, and prescription medication. Over-the-counter medications and wellness services like massage, chiropractic adjustments, and acupuncture should also be expected from this program.

Hand sanitizer and period care products are among the many other items that qualify. Active-duty personnel and some Reserve Component members serving on active Guard and Reserve duty will have access to the accounts.

Health Care FSA Guidelines and Enrollment

DOD's dependent care flexible spending account benefit, which was made available to military members in 2024, is administered by FSAFEDS. Along with their claim form, service members must include receipts or other supporting proof.

Service members can enroll online at fsafeds.gov once the enrollment period opens. FSA funds must be used and claimed by service members by December 31st, the end of the plan year. If they re-enroll, they can carry over up to $640 of unused funds into the next year.

If not, it's use or loss: Any money that isn't utilized throughout the plan year would be forfeited by service members. Each person may keep a separate account, and if both spouses qualify for a health care FSA, they can each contribute between $200 and $6,400 annually. The Defense Department provides free advice to service members who are debating whether to utilize this benefit through consultations with their tax counselor.

Taking Care of Our People Initiative

The new health care benefit is one of the newly announced DoD initiatives to enhance the quality of life for military personnel and their families. It is a component of Secretary of Defense Lloyd Austin's Taking Care of Our People initiative, which has already helped millions of our service members.

Here are the other initiatives to enhance the well-being of our military force:

• Access to Wi-Fi Pilot: The Department of Defense is conducting a number of pilot projects to offer free high-speed Wi-Fi internet access to service members residing in unaccompanied housing. These projects aim to lower the living expenses and enhance the quality of life for junior enlisted service members.
• Making Moves Easier: The DoD will extend the reimbursement period for temporary lodging expenses to 21 days and permit the authorization of temporary lodging allowance for a maximum of 60 days. There will also be a study to examine and assess raising the weight allowances for domestic products for service members.
• Quality of Life at Remote and Isolated Installations Review: Three remote installations will be the subject of a DoD evaluation of risk and protective variables, as well as the ability to prevent detrimental behaviors. The review's findings will be applied to enhance and inform the quality of life in certain areas.
• Review of Uniform Costs: The DoD will examine the standard uniform apparel items provided to the enlisted force to make sure the uniform replacement allowance rates are adequate.

Read next:

• The Complete Guide to TRICARE Young Adult Coverage
• Military Enlistment Incentives: Your Guide to Bonuses, Pay & More
• The Global Household Goods Contract Plans to Add More Installations in 2025