Flexible Spending Accounts/Arrangements (FSA) may be offered to employees to be used to pay for out-of-pocket health care expenses.
- If enrolled in a High Deductible Health Plan, the employee is only eligible for a Limited Purpose FSA (reimburses for eligible vision and dental expenses only).
- Both the traditional and the limited purpose FSA are considered as an FSA plan type.
- FSA plan eligibility is typically determined based on the employee's medical enrollment.
- If the employee enrolls in a High Deductible Health Plan, they can only enroll in a limited purpose FSA.
- If they are enrolled in a different medical plan (HMO, PPO, etc), or they decline medical, they can enroll in a traditional FSA plan.
To establish both within a single company benefit program:
1. Build two plans and name them accordingly.
2. In Eligibility, place a Contingency (TYPE and PLANS) on the FSA plans, aligning them with the appropriate medical plans.
- For the limited purpose FSA, set the Contingency to Enrolled and choose all of the High Deductible Health Plans.
- For the traditional FSA, set the Contingency to Not Enrolled and choose all of the same High Deductible Health Plans.
- This makes the traditional FSA available for any other medical plans.
For more information about eligibility and contingencies, see Configuring Plans > Eligibility.