Health Care Flexible
Spending Accounts Fact Sheet

FSAs Enable Millions of Americans to Better Manage Health Care Costs

  • Health care flexible spending accounts (FSAs) are voluntary, account-based plans that enable you to pay for eligible out-of-pocket health care costs for yourself, your spouse and any eligible dependents – including elderly parents or adult children up to age 26
  • FSAs are an important benefit for consumers of any age and in any health but they are particularly valuable for families and those who battle chronic conditions that require ongoing care, medical supplies and services

FSAs Increase Savings

  • An FSA allows you to save up to 40 percent on common health care expenses not covered by insurance, such as prescription drugs, co-pays, dental visits and contact lenses
  • Money set aside in an FSA is deducted from your paycheck and goes directly into your FSA without forcing you to pay payroll taxes on that money, thus decreasing your taxable income and increasing your spendable income

FSAs Encourage Health Care Budgeting

  • Like any other household expense, FSAs help consumers to budget and manage health care costs
  • The entire annual contribution to an FSA is available to you at the start of the plan year, enabling you to use your FSA to pay for both planned and unexpected medical expenses on day one

FSAs Empower Participants to be More Involved in their Own Health Care

  • The simple decision to enroll in an FSA encourages participants to play a more active role in their health care.  From the beginning, participants must estimate their annual health care costs and monitor the amount of money remaining in their FSA.
  • By having funds set aside to pay for health care costs not covered by insurance, FSAs enable families to be more actively involved in their health care by allowing them to schedule regular medical appointments, get annual screenings and visit specialists they may not visit without an FSA

Real Stories. Real Users.


From Florida

“My FSA is a life saver! Last year I was diagnosed with a malignant tumor and luckily I was able to have the necessary surgeries to remove it immediately since my FSA covered all of the out-of-pocket costs for my deductible and medicines.”

Annual Savings: $816

Read more about how real people use their pre-tax benefits.