Double Dipping with LPFSA & HSA
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.
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