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
Special Savings for You!
Stretch your FSA account when you shop with our preferred partners. Use this coupon code and maximize your savings!
Learn More About Tax-Advantaged Employee Benefits
Marketplace
Buy Eligible Items
Find out where you can quickly make eligible purchases with HSAs, FSAs, and other accounts
Eligible Expenses
Find Eligible Items
Check out the eligible expenses list to see just how useful health care accounts can beCalculators
Estimate Growth Potential
Use our plan calculators to see how much contributing to an FSA could pay off in the long runBlog
Get Helpful Tips
Our blog, Connections, is the perfect place to find helpful posts on CDH and work-life benefits
Resource Library
Continue Learning
Visit the Resource Library to find videos, guides, infographics, and more to help you make the most of your benefits
FAQs
FSA FAQs
Have questions? Learn more about Flexible Spending Accounts (FSAs) in our frequently asked questions section.Our Latest Resources
Our Latest Blog Posts
HSA and FSA: What’s the Difference?
FSAs and HSAs may differ like apples and oranges when it comes to spending and saving. Our latest blog looks to help participants determine which account may bear the most fruit, come open enrollment.
FSA-Eligible Items: Top Tips for Participants and What Can be Purchased…at a Glance!
While many account holders are rock stars at maximizing their FSA funds, there are always a select few who wait until the end of the year to use their account, or simply let the funds expire. Don’t be that person! Learn how to make the most of your account with our quick tips and FSA-eligible items infographic.
ConnectYourCare Announces Strategic Alliance with CommonCensus
This partnership makes way for consumer-directed health care and commuter benefit solutions on CommonCensus' robust benefits management platform.