HSA + FSA = Limited Purpose FSA
Our flexible solution gives employers and their employees smart account combinations that help maximize tax savings for health expenses. Our Health Savings Account (HSA) paired with a Flexible Spending Account (FSA) offers superior account technology and a focus on providing a solution customized to meet your company’s unique needs.
When paired with an HSA, FSAs are limited in use to dental and vision expenses only. We call these accounts Limited Purpose FSAs, or LPFSAs. These accounts allow employees to maximize tax savings while preserving their HSA balances for growth. Our robust rules engine ensures the right account pays for the right expenses at the right time, while providing employers maximum flexibility.
Optum Financial Limited Purpose FSA plan customization options include:
HSA On Demand®
FSA rollover amounts
FSA run-in and run-out
FSA grace period administration
LPFSA may remain limited purpose throughout the plan year, or may cover all 213(d) expenses once deductible is met. Here’s how the post-deductible option works:
Before Deductible is Met: Before the medical plan deductible is met, the LPFSA covers only eligible dental and vision expenses. When the participant submits dental or vision claims online, by using the mobile app, or by using the payment card, these expenses are deducted from the LP. All other eligible expenses deduct from the HSA.
After Deductible is Met: Once the medical plan deductible is met, the LPFSA becomes a full Health Care FSA, covering all eligible medical, dental, vision and prescription expenses. All eligible online, mobile, and payment card claims are deducted from the FSA until it is depleted.
How It Works
Both HSAs and FSAs are great for tax savings. When these accounts are paired, the FSA is limited to dental and vision expenses. But since the HSA also covers dental and vision, you may be asking yourself, “Why would I want both accounts?”
A Simplified Experience for Participants
Our system makes it easy for participants, automatically pulling expenses from the correct account with no additional effort needed.
Our Mobile Tools Provide a Superior Experience
Participants love the convenience of our mobile technology – account balances at their fingertips, the ability to submit receipts before they are lost, and expert support that is just a tap away. Additionally, our account alerts immediately notify participants when a payment card purchase requires additional documentation, bringing proactive support to the next level.
Health accounts have never been easier to use.
- Easy reimbursement processes with payment cards, streamlined claims feeds, and online bill pay options
- Simple uploading for claims documentation
- Payment (debit) card with multi- account capabilities
- Fast access to funds and rapid reimbursement payments
- Customer Service 24 X 7, 365
- Mobile application & text alerts
- Enhanced employer dashboards
We remove your administrative burden and deliver increased cost savings.
- Expert, dedicated support from a team of professionals dedicated to clients’ strategic and day-to-day needs
- Complete account transparency through detailed online reporting tools
- Proven implementation methodology and specialists who speed the implementation timeline, accommodate customizations, and earn 100% satisfaction rates
- Communication kits that ease implementation, boost enrollment, and increase employee satisfaction rates
- Programs that drive higher employee benefits satisfaction rates and increased tax savings
Special Savings for You!
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Have questions? Learn more about Flexible Spending Accounts (FSAs) in our frequently asked questions section.Our Latest Resources
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HSA and FSA Eligible Expenses for Mom, Baby, and Parents-to-be
Parenting and motherhood are some of the greatest joys in life, but it does require some financial planning! Thankfully, HSAs and FSAs exist to help parents offset the cost of medical expenses for their kids and themselves, and there is a long list of items and services that are eligible for every stage of childrearing. Check out all the eligible items in this post.
COVID-19 Personal Protective Equipment (PPE) Now Eligible for FSA, HSA, and HRA Reimbursement
On March 26 the Internal Revenue Service (IRS) released IRS Announcement 2021-7, which states that personal protective equipment such as masks, hand sanitizer, and sanitizing wipes that are purchased “for the primary purpose of preventing the spread of COVID-19” (COVID-19 PPE) are qualified medical expenses under Section 213(d) of the Code.
American Rescue Plan Act of 2021: Provisions for Dependent Care FSAs and COBRA
On March 11, the American Rescue Plan Act (ARPA) of 2021 was signed into law. As a result, temporary provisions have been announced that apply to COBRA, as well as Dependent Care Assistance Programs (DCAPs)—also known as Dependent Care Flexible Spending Accounts (FSAs). Read on for a brief summary of these provisions.