You can use the Health Care FSA to pay for expenses not covered by your medical, dental, or vision plans. For example, deductibles, copays, coinsurance, certain over-the-counter drugs, and other medical expenses not covered by your health plan, such as orthodontia, eyeglasses, contact lenses, or laser vision surgery.

Health Care FSAs vs. Tax Deductions

Even though the health care flexible spending account (FSA) reimbursements can reduce your taxable income, the federal income tax deduction might provide greater savings for some employees. To claim such a deduction, your health care expenses must exceed 7.5% of your adjusted gross income. Most employees find that their eligible health care expenses do not reach that amount. However, you should consult with your tax advisor to determine which method is best for your personal situation.