"Flexible Spending Arrangement"
A health FSA refers to a medical reimbursement plan that is a "flexible spending arrangement" (FSA). The program gives employeees coverage under which certain expenses may be reminbursed, subject to certain maximum amounts and reasonable conditions. Employees can use a health FSA to pay for medical expenses that are not reimbursed through insurance or any other arrangement.
This plan is an option to employees, of which the employee is rescponsible for full payment contributions.