FAQs
Most Popular Questions
What is a Limited Expense Health Care FSA?
A Limited Expense Health Care FSA (LEX HCFSA) is a flexible spending account option if you are enrolled in a Federal Employees Health Benefits (FEHB) high-deductible health plan (HDHP) and have a Health Savings Account (HSA). This option is also available if your spouse is enrolled in a non-FEHB HDHP and has an HSA.
IRS rules do not allow you to contribute to a Health Savings Account (HSA) if you are covered by any non-qualifying health plan, including a general-purpose Health Care FSA. By limiting FSA reimbursements to qualifying dental and vision care expenses, you and your spouse remain eligible to participate in both a LEX HCFSA and an HSA. Participating in both plans allows you to maximize your savings and tax benefits. The money you contribute to a LEX HCFSA is not subject to payroll taxes, so you pay less in taxes and take home more of your paycheck.
Go to www.opm.gov if you want to learn more about HDHPs and HSAs.