A health care Flexible Spending Account (FSA) allows an employee to set aside money from their payroll check on a pre-tax basis to use for eligible out-of-pocket medical expenses. Employees estimate the amount of money they expect to spend on eligible expenses in the plan year and have that amount deducted from their payroll check over the course of the year. Employees use debit cards for convenience to pay for medical, dental, vision, hearing, and prescription drug coverage tax-free for themselves, their spouse and eligible dependents. Since FSA contributions are tax-deductible, an employee could save approximately 30% on every dollar spent on eligible expenses that can include : co-pays, co-insurance, deductibles. Vision expenses like lasik surgery, eyeglasses and contact lenses. Dental expenses like orthodontic, implants, crowns and bridges. Prescription drugs and many over-the-counter items. The full elected amount is available at the start of the plan year.