Flexible Spending Account (FSA)

Insurance term

Definition

An employer-sponsored benefit account that lets you set aside pre-tax dollars for qualified medical expenses. Unlike HSAs, FSAs have a "use it or lose it" rule — unused funds expire at the end of the plan year (some employers allow a $610 rollover or 2.5-month grace period).

Related Terms

  • Deductible

    The amount you must pay out of pocket for covered healthcare services before you...

  • Copay

    A fixed amount you pay for a covered healthcare service after you have met your ...

  • Coinsurance

    Your share of the costs of a covered healthcare service, calculated as a percent...

  • Out-of-Pocket Maximum

    The most you have to pay for covered services in a plan year. After you spend th...

  • Premium

    The amount you pay each month for your health insurance coverage, regardless of ...

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