ALCOAST 083/25 - FEB 2025 HEALTH CARE FLEXIBLE SPENDING ACCOUNT (HCFSA) SPECIAL ENROLLMENT PERIOD FOR MILITARY PERSONNEL

R 241620Z FEB 25 MID120001755561U
FM COMDT COGARD WASHINGTON DC
TO ALCOAST
BT
UNCLAS
ALCOAST 083/25
SSIC 7220
SUBJ: HEALTH CARE FLEXIBLE SPENDING ACCOUNT (HCFSA) SPECIAL
ENROLLMENT PERIOD FOR MILITARY PERSONNEL
1. This ALCOAST announces the opportunity for eligible Coast Guard
members to enroll in a Health Care Flexible Spending Account (HCFSA)
during a Special Enrollment Period from 03-31 March 2025. HCFSA is a
pre-tax account used to pay for eligible health care costs not
covered by your health care plan. This includes copays, deductibles,
dental care (braces and orthodontia), vision care (glasses and
contact lenses), wellness treatments (acupuncture and massage
therapy) and over-the-counter medications. Contributions are
deducted from pay, pre-tax, and then deposited into a HCFSA. This
reduces a member's taxable income.
2. Eligibility. U.S. Coast Guard Active-Duty and Reserve members,
including Reserve Component Managers, when performing active duty
for more than 180 days are eligible to enroll in HCFSA. Eligibility
information may also be found (listed under Eligibility of
Frequently Asked Questions) at:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/HCFSA/FAQ

3. Enrollment:
    a. Eligible members may enroll in a HCFSA for the 2025 plan
during the special enrollment period from 03-31 March 2025.
Enrollment will be processed by the Federal Flexible Spending
Account Program at:
(Copy and Paste URL Below into Browser)

https://www.fsafeds.gov/

    b. Specific instructions on how to enroll during the Special
Enrollment Period can be found at:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/HCFSASpecialEnrollment

    c. A HCFSA allows each participant to contribute between $100 and
$3,300 per individual per year to pay for eligible heath care
expenses. If both spouses are eligible through their employers and
maintain two separate accounts, they may contribute a combined
$200-$6600 per year.
    d. A HCFSA typically operates on a calendar year basis, starting
01 January and ending 31 December. However, during the special
enrollment period, all eligible expenses must be incurred between
the day after enrollment through 31 December. If a member enrolls on
03 March, they can incur expenses between 04 March - 31 December.
If the member enrolls on 31 March, they can incur expenses from
01 April - 31 December.
    e. Eligible Service Members may also enroll at any time in a
HCFSA following a qualifying life event such as birth or adoption of
child, change in marital status, deployment, or a permanent change
of station. More information about QLE can be found at:
(Copy and Paste URL Below into Browser)

https://www.fsafeds.gov/public/pdf/FSAFEDS-QLE-Quick-Reference-
Guide%20FINAL-s.pdf

    f. Upon enrollment, the specified amount of funds will be
withheld from the Service Members semi-monthly paycheck and
deposited into their HCFSA. Each month, half of the deduction will
occur at mid-month, and half at the end of the month. The deposit to
the HCFSA and the full election amount will be made available the
following month.
    g. During the special enrollment period, members who enroll
between 03 March and approximately 25 March will see their
deduction(s) begin with mid-month April payroll and the funds
available in the HCFSA approximately 01 May. Members who enroll
between 25 March and 31 March may not see their deduction(s) begin
until mid-month May payroll and the funds available in the HCFSA
approximately 01 June. Members can submit a claim through the
FSAFEDS website or app to receive reimbursement of eligible
expenses.
    h. Contributions should be carefully planned to not exceed the
total amount of qualified expenses anticipated to be incurred
during the year.
    i. Enrolled members must use and claim the funds in their HCFSA
account by the end of the plan year (e.g., 31 December 2025 for the
2025 plan year). Unclaimed funds will be forfeited at the end of
the plan year. All claims must be submitted by 30 April following
the plan year (e.g., 30 April 2026 for those enrolled in the 2025
plan year).
    j. Unclaimed contributions for HCFSA. Up to $660 can be carried
over to the next plan year if the member re-enrolls in the HCFSA
benefit. If unused funds exceed the carryover limit, that amount
will be forfeited.
    k. Annual Re-enrollment. Eligible Service Members must re-enroll
each year during the Federal Open Season (e.g., from mid-November
through mid-December 2025 for the 2026 plan year) to continue
participation.
4. Things to consider before HCFSA enrollment:
    a. Review your family's budget and cash flow. Enrolling in a
HCFSA will impact your take home pay.
    b. Understand your tax benefits. Free online tax filing and
one-on-one help from a Money Coach and/or Certified Tax Coach are
available to Service Members and their families from CG SUPRT.
5. HCFSA and Coast Guard Resources. Free assistance is available to
help members make the right decision, provide enrollment
information, and understand how the HCFSA affects both their
families' financial budget and tax situation.
    a. Office of Financial Readiness HCFSA webpage:
(Copy and Paste URL Below into Browser)

https://finred.usalearning.gov/Benefits/HCFSA

    b. FSAFEDS:
(Copy and Paste URL Below into Browser)

https://www.fsafeds.gov/

    c. Coast Guard Personal Financial Management Program (PFMP) local
contact list can be found at:
(Copy and Paste URL Below into Browser)

https://www.dcms.uscg.mil/Our-Organization/Assistant-Commandant-for-
Human-Resources-CG-1/Health-Safety-and-Work-Life-CG-11/Office-of-
Work-Life-CG-111/Personal-Financial-Management-Program-PFMP/

    d. For Tax consultation: Contact CG SUPRT at 1-855-CG SUPRT
(247-8778) or visit:
(Copy and Paste URL Below into Browser)

https://assets.mysecureadvantage.com/cgsuprt/cgsuprt-financial-
wellness-program-overview.pdf

6. CAPT Ryan P. Matson, Acting Assistant Commandant for Military
Personnel (CG-1M), sends.
7. Internet release is authorized.