A common question posed: Can a participant be reimbursed for the same dental and vision expenses through both the Limited Purpose FSA and the HSA?
This is called, “double dipping.” It is important to know that “double dipping” is not allowed. Double dipping is being reimbursed for the same expense twice, through the LPFSA and HSA, even if the expense is considered a qualifying expense through both accounts. “Double dipping” can lead an employee into a little bit of trouble.
The Limited Purpose Flexible Spending Account (LPFSA) is a pre-tax benefit that maximizes tax savings and is for employees enrolled in a high deductible health plan and a Health Savings Account (HSA).
The BASE® LPFSA is a form of a flexible spending account that allows employees to put aside pre-tax money to help employees pay for eligible dental and vision care expenses.
By electing both the LPFSA and HSA, employees can pay for their eligible dental and vision care expenses through the LPFSA on a pre-tax basis, allowing them to save more money in their HSA for long-term investing, and saving for the future for other qualified health care expenses.
To learn more about the BASE® Limited Purpose FSA, contact BASE® at 888.386.9680 or visit www.BASEonline.com.
If employers are looking for health benefit options to offer employees, it is highly likely that they have run into the QSEHRA.
The Qualified Small Employer HRA (QSEHRA) allows small employers to contribute tax-free to their employees’ qualified health care expenses without offering a group health plan.
The BASE® QSEHRA is a health benefit that allows employees to secure their own health plan on or off the Marketplace while reimbursements are 100% deductible to the employer.
Check out the next 6 steps to implement the QSEHRA into a business:
- Employer eligibility. To be eligible, the employer must have fewer than 50 full-time employees and does not provide a group health plan to the employees.
- Determine employee eligibility. The QSEHRA must be offered on the same terms to all eligible employees. Something to note, all employees and family members must secure their own health insurance plans that meet the minimum essential coverage (MEC) definition and provide proof of coverage.
- Establish reimbursement limits. With the QSEHRA, employers can set different benefit limits for self-only versus family coverage up to the annual maximum established by the IRS.
- Choose eligible expenses. Employers can choose what employee health care expenses can be reimbursed, as long as it is within the legal limits. The QSEHRA can be used to reimburse health care premiums or IRS-permitted out-of-pocket health care expenses.
- Pick set up and start date. This is where BASE® comes in. Pick a start date and BASE® will create the written notices, information, and plan documents that are required. Please note that employers who fail to follow the rules may face severe penalties.
- Present new benefit to employees. Employees must be given a written notice 90 days before the QSEHRA starts. The employees that are not eligible must also receive the notice if they become eligible for the plan.
The QSEHRA is a cost-effective alternative to offering employees a traditional group health plan. To learn more about the BASE® QSEHRA, contact BASE® at 888.386.9680 or visit www.BASEonline.com.
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