Limited Purpose Flexible Spending Accounts (LPFSA)

Save more on dental and vision expenses

by HealthEquity · Compensation & Benefits

Limited Purpose Flexible Spending Accounts (LPFSA) screenshot

Executive Summary

A Limited Purpose Flexible Spending Account (LPFSA) from HealthEquity is a tax-advantaged account that lets people use pre-tax dollars to pay for eligible dental and vision expenses. It can be combined with a Health Savings Account, so routine vision and dental costs can be paid from the LPFSA while HSA dollars are kept for long-term healthcare expenses. Eligibility requires an LPFSA offered through the person's employer, and contributions are deducted pre-tax from each paycheck. HealthEquity says members save on average 30 percent on hundreds of products and services.

Use Cases

  • Paying for prescription eyeglasses and prescription contact lenses
  • Paying for Lasik surgery
  • Paying for dental services and procedures
  • Paying for orthodontia, including Invisalign
  • Paying routine vision and dental costs from the LPFSA so HSA dollars can be saved for long-term healthcare expenses

Features

Visibility

  • Single-view dashboard: Our unified dashboard lets members perform basic account functions directly from the home screen.

Intelligence

  • Increase auto-substantiation: Validate and reconcile more transactions, faster.

Support

  • Claims Management: Submit claims and view claims status
  • Custom integrations: Streamline workflows using no-cost integrations with your health plan and payroll administrator.
  • Stacked FSA plus HRA: Give your people a single debit card for all transactions.
  • On-screen Tutorials: Step-by-step on-screen tutorials show members how to perform virtually any account function.

Technical Specifications

Architecture
Cloud-native architecture leveraging Microsoft Azure and open-source technologies.
Deployment
SaaS

Infrastructure

  • Azure

Security & Compliance

Certifications: SOC 2 Type II, NIST CSF, HIPAA, HITRUST

Encryption: Industry-standard encryption with two-factor authentication

Pricing

Model
Employer-sponsored, employee pre-tax contributions
Target Customer
Mid-Market,Enterprise

About HealthEquity

HealthEquity is a financial technology and business services company that serves as a non-bank health savings trustee. They empower healthcare consumers by providing Health Savings Accounts (HSAs) and other consumer-directed benefits (CDBs) such as Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and commuter benefits. Their target market includes individuals, employers, benefits advisors, and health and retirement plan providers.

Founded: 2002 · Headquarters: Draper, USA · Employees: 1,001-5,000 · Public

Verified sources

Each of these facts was checked against the vendor page linked (2026-10-15).

Alternatives to Limited Purpose Flexible Spending Accounts (LPFSA)

  • Lumity by Lumity — We handle employee benefits so your HR team can focus on everything else.
  • Mercer Comptryx by Mercer — Tech sector compensation and workforce analytics benchmarking
  • Mercer Job Architecture Tool by Mercer — Simplify job architecture customizations through one simple tool, tailored to meet the needs of your organizations.
  • Mercer MarketPricer by Mercer — Get instant access to global pay data - base pay, total cash, and the mix of base and bonus - with MarketPricer, a self-service job pricing
  • Merit Cycle Management by OpenComp — Run Merit & Bonus Cycles based on market data & salary bands.
  • Morgan Stanley at Work by Morgan Stanley at Work — Unlock the Opportunity in Your Equity
  • Nayya by Nayya — Where AI revolutionizes employees’ health and wealth
  • Nayya Build by Nayya — Nayya Launches Build: AI Tool to Simplify HR Benefits Materials

Keep researching