New Debit Card Coming for Military’s Health Care Flexible Spending Accounts

Beneficiaries who sign up for a federal Health Care Flexible Spending Account for 2027 can choose a new Visa debit card tied to the account.

Through the Federal Flexible Spending Account Program (FSAFEDS), beneficiaries set aside pre-tax money to spend on eligible health care expenses during the plan year.

By paying with the new debit card at the point of receiving care or when paying for another eligible expense, users won’t have to wait for reimbursement from the account anymore, the Office of Personnel Management said in its announcement of the annual Federal Benefits Open Season to enroll, which runs Nov. 9-Dec. 14, 2026.

Military service members became eligible for the Health Care FSA account type in 2025. The program estimates that users may save as much as a third on such expenses thanks to the tax savings. OPM had not announced the 2027 account limit as of Oct. 19, 2026. The 2026 maximum was $3,400 for health care accounts.

The new card is optional. Participants can opt to get it or to keep paperless reimbursement.

What the Card Does

OPM said participants who choose the card for 2027 “will be able to pay eligible expenses directly at the point of service,” drawing directly on the account, so they do not have to pay separately up front and wait to be reimbursed. Transactions and balances will appear in the FSAFEDS mobile app.

FSAFEDS says the card works “everywhere Visa debit cards are accepted for eligible expenses.” It cannot be used at ATMs; it does not give cash back; and it cannot be used at gas stations, restaurants or other establishments that are not health related. Cardholders will need to save itemized receipts and Explanation of Benefits statements to validate expenses when asked. The card is issued by Bancorp Bank under a license from Visa U.S.A.

FSAFEDS had not said, as of Oct. 19, when cards will arrive or how to request one. Its Sept. 1 announcement said additional details “will be provided in the coming months.”

Which Accounts Get It

OPM said the card is for the Health Care FSA and the Limited Expense Health Care FSA account types. The card is not described as a way to pay for child care or elder care costs. The Limited Expense account is open only to people enrolled in or covered by a high-deductible health plan with a health savings account, and it reimburses only dental and vision expenses, according to OPM’s FSAFEDS fast facts.

Who Qualifies

FSAFEDS is for active employees only, according to OPM. Health care accounts are open to employees of participating agencies who are eligible for the Federal Employees Health Benefits Program, though enrollment in that program is not required. “By law, retirees and survivor annuitants are not eligible,” OPM says.

Uniformed service members have a separate eligibility rule. FSAFEDS’s frequently asked questions, which describe eligibility as of March 2025, list active component members as eligible, along with reserve and National Guard members performing Active Guard Reserve duty and Coast Guard Reserve members on active duty for more than 180 days. Other reserve component members are not eligible.

Not every federal employer takes part. FSAFEDS lists the District of Columbia government, the Farm Credit Administration, the Federal Reserve System, the federal judiciary, the Supreme Court, the U.S. Postal Service and several other entities as not participating, though some offer separate FSA programs.

Service members could not join the Health Care FSA until a special enrollment period in March 2025. Military families should confirm their current status on FSAFEDS.

Why Current Participants Have to Re-enroll

Unlike health, dental or vision coverage, an FSA does not renew automatically. OPM’s highlights say, “participation in FSAFEDS does not automatically continue from year to year” and that all current participants who want to continue for 2027 “must reenroll.” An election made during Open Season takes effect Jan. 1, 2027.

Re-enrolling also matters for unspent money. OPM’s fast facts say up to $680 of unspent health care funds can carry into the next year’s account, provided the participant makes all payroll deductions, stays employed at a participating agency and re-enrolls.

What to Check Before Dec. 14

Here’s what to do before the end of Federal Benefits Open Enrollment on Dec. 14, 2026:

• Confirm eligibility on FSAFEDS.
• Decide between the card and paperless reimbursement. Both stay available.
• Re-enroll even if the election stays the same.
• Check the 2027 election limit. OPM had not announced it as of Oct. 19. The 2026 maximum was $3,400 for health care accounts.

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