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Health Care FSA. A Health Care FSA allows employees to set aside pre-tax dollars out of their paychecks to pay for eligible health care expenses. Funds put into the plan avoid both Federal Income Tax and FICA, creating a tax savings for both the participant and the employer! request a quote.
Benjamin Thornton. Insurance Broker, Arlington, Massachusetts. FSA stands for Flexible Spending Account. A FSA is a tax-preferred account which provides you with money for paying medical related bills including prescriptions and sometimes over the counter products. The money for this account comes from pre-tax contributions by the employer and/or the member.