What does HFSA stand for?

Limitation On Health Flexible Spending Arrangements Under Cafeteria Plans.

223 eligibility to make HSA contributions in various situations in which the individual is covered by a high-deductible health plan (HDHP) and also by a health flexible spending arrangement (FSA) or a health reimbursement arrangement (HRA).

Revenue ruling 2003-102 held that an employee's receipt of a reimbursement from an employer-sponsored health flexible spending arrangement (health FSA) under a cafeteria plan, health reimbursement arrangement or other employer health plan for over-the-counter (OTC) drugs is excludible from gross income under IRC section 105(b); however, amounts an employee pays for dietary supplements are not reimbursable or excludible, nor can the individual deduct such costs as section 213 medical expenses.

Edward Royce (R-CA) would allow amounts in a health flexible spending arrangement that are unused during a plan year to be carried over to subsequent plan years or deposited into certain health or retirement plans.

The IRS recently ruled that expenses for over-the-counter drugs may be paid from health flexible spending arrangements (commonly known as "health FSAs").