FAQs

Glossary Terms F-G

Q

Flexible Spending Account (FSA)

A

A Flexible Spending Account is an account funded by employee salary deferral elections and, in some cases, employer contributions, for the purpose of reimbursing expenses on a pre-tax basis. Most plans offer two types of accounts: Medical (also called Health Care) for reimbursement of eligible medical, dental, vision, prescription and over-the-counter drug expenses; and Dependent Care for reimbursement of day care expenses.

Q

Flexible Spending Account, Limited (Limited FSA)

A

A Flexible Spending account that is limited to dental, vision or preventive care only. Can be used in conjunction with an HRA or HSA.

Q

Formulary

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A listing of prescription drugs established by the health plan, which includes both Brand Name Prescription Drugs, and Generic Prescription Drugs. This list is subject to periodic review and modification by the health plan.

Q

Generic Drug

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A prescription drug, which is not protected by, trademark registration, but is produced and sold under the chemical formulation name.