Directs each Secretary of the military department concerned to: (1) establish procedures to implement flexible spending arrangements (FSAs) for military health care and dependent care for active-duty military personnel on a pre-tax basis; and (2) consider life events of members of the Armed Forces that are unique to them, including changes relating to permanent changes of duty station and deployments to overseas contingency operations.
Directs the Secretary of Defense (DOD) to submit to Congress recommendations on the advisability of authorizing FSAs for members of the reserves.