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.
ConnectYourCare 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
Limited Purpose FSAs: Combining HSAs and FSAs Infographic
Learn more about combining an HSA and FSA to form a Limited Purpose FSA
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Check out the eligible expenses list to see just how useful health care accounts can beCalculators
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