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Health Care Reform:

Health Insurance & Affordable Care Act

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Flexible spending account (FSA)

An FSA is an account you set up to pay your medical costs. You need to have a job to set up an FSA. The money that you put in an FSA comes straight from your paycheck before you pay taxes. By saving money on your taxes, you're saving a bit on what you spend for health care.

When you sign up for your health plan during open enrollment, you decide how much money you want taken out of your paycheck to go into your FSA.

You can use money in your FSA for copays, deductibles, prescription medicines, and medical devices. Unfortunately, if you don’t use all the money in your FSA by the end of the year, you lose it.

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