Help Center
What is a limited purpose FSA (LPFSA)?
A LPFSA is a flexible spending account (FSA) that can only be used for expenses related to dental and vision. It functions just like a healthcare FSA but unlike a healthcare FSA it can be paired and used alongside a health savings account (HSA).
How does a LPFSA work?
LPFSA funds are deposited on a pre-tax basis where they remain in the account until your employee submits a claim for reimbursement. Once the claim has been processed and approved the funds will be deducted from the account and sent to the member via check or if the member has direct deposit set up in their ConnectYourCare account they will be sent via ACH.
What can members use their LPFSA funds for?
Eligible expenses include things like, dental and vision screening tests, dental crowns, glasses, dentures, dental x-rays etc. For more examples of eligible expenses please see the attachment here.
Can LPFSAs cover expenses for partners and or dependents?
Yes, just like a healthcare FSA the limited purpose FSA can be used to cover expenses for spouses and dependents.
During what dates is the LPFSA effective?
Members will have access to their LPFSA for a full plan year. That means any expenses that are incurred between January 1st and December 31st while they are enrolled in the LPFSA are eligible for reimbursement.
When does the LPFSA funds expire? Do they roll over if they aren't used by December 31st?
The LPFSA funds expire at the end of the plan year, December 31st. Members will have until that date to incur any eligible expenses. After December 31st members will have until March 31st to submit any unsubmitted claims, after that date any unused funds will be forfeited.
What if a member leaves my company mid year?
If a member leave your company mid year they will lose access to their LPFSA funds upon termination, just like a HCFSA.
Can LPFSA funds be used for expenses incurred before the LPFSA effective date?
No, any expenses that were incurred before the start of the plan year are not eligible for reimbursement under the LPFSA.
How long do members have to file a claim?
Members are able to file a claim against their LPFSA up until March 31st 2022. After that any unused funds in their LPFSA account will expire and be forfeited.
Can members have a LPFSA if they have an HSA?
Yes! LPFSAs were built to go hand in hand with a HSA.
If a spouse has an FSA, can members still have a LPFSA?
Yes, if a spouse is enrolled in an FSA or HSA the member is still eligible to enroll and utilize a LPFSA.
Where can members view their LPFSA enrollment and account information?
Members will be able to view their LPFSA enrollment and account information in ConnectYourCare's portal.