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Tools to improve the financial health of your employees.

Limited-Purpose Flexible Spending Account Plans (LPFSA)
These special Flexible Spending Accounts are designed to work with Health Savings Account (HSA) plans that many employers now offer in conjunction with a High-Deductible Health Plan (HDHP). Limited-Purpose Flexible Spending Accounts (LPFSAs) only cover dental, vision and hearing expenses. The rules governing the Heallth Savings Accounts do not allow the LPFSAs to cover medical expenses.

If you offer employees a choice of medical plans, with and without HSAs, you should consider offering both the LPFSA and the standard FSAs. The employees participating in the HSA plan can choose the LPFSA and your other employees can choose the standard FSAs that also cover medical expenses. These is no additional cost to offer both styles of FSAs.

In either case, you may also offer Dependent Care FSAs for employees with work-related day care expenses.

When should you provide LPFSAs?

Flexible Spending Accounts are appropriate if:

  • Your medical plan design included a Health Savings Account
  • You do not offer a dental or vision plan
  • You have dental or vision plans but they require high out-of-pocket expenses
  • You have a number of employees with day care expenses

    What if we are a small employer?

    The BenefitsWorkshop offers a number of unique options that make these plans affordable even if you have ten or fewer employees.

    How can I order a proposal?

    Simply click the button below and complete the form. You should receive your proposal within 48 hours.

     


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