Using FSAs with HSAs

Discovery Benefits will be administering the "Limited Purpose" Flexible Spending Account (LPFSA) for 2022.

If you are enrolled in an Health Savings Account (HSA), you are not eligible to participate in a traditional flexible spending account, but you may participate in a “limited-purpose” FSA. This type of FSA is specifically designed for participants also enrolled in an HSA and works in the same way as a traditional FSA, except that reimbursements are limited to those related to dental and vision care expenses. 

  • Works only in conjunction with an Consumer Driven Health Plan (CDHP)/Health Savings Account (HSA).
  • The debit card is good for five (5) years from the issue date. 
  • The LPFSA includes a Carryover Provision, which allows a participant to carry over a maximum of $550 of unused LPFSA funds into the next plan year.
  • LPFSAs are "use it or lose it" accounts. Any funds left at the end of each year above the $550 carryover are not recoverable by the participant.
  • The full annual election is available on the effective date of enrollment.
  • Employees annually elect the amount of pre-tax money to be allocated for out of pocket medical expenses.
  • Weekly claims processing and debit card technology enable swift claims reimbursement.
  • Provides a benefit for all employees, including those who do not participate in the company-sponsored medical/dental/vision plans.

Limited Purpose Flexible Spending Accounts (LPFSA)