Limited Purpose Flexible Spending Accounts (LPFSA)
Save on eligible dental and vision expenses with pre-tax dollars through a tax-advantaged Limited Purpose FSA.
Executive Summary
A Limited Purpose Flexible Spending Account (LPFSA) from HealthEquity is a tax-advantaged account designed to help individuals pay for eligible dental and vision expenses using pre-tax dollars. Unlike a traditional Health FSA, an LPFSA is specifically structured to complement an HSA-eligible health plan and an HSA, allowing individuals to maximize their tax savings on healthcare costs while still contributing to an HSA. Members can typically save an average of 30 percent on qualified expenses by leveraging the pre-tax nature of their contributions. The range of eligible expenses includes common items such as glasses, contact lenses, Lasik eye surgery, Waterpik devices, and various dental procedures like fillings, crowns, and orthodontics. This makes it a valuable tool for managing both routine and unexpected vision and dental costs. HealthEquity provides a user-friendly platform for managing LPFSA funds, including tools for easy claims submission and management. Account holders can log into their accounts to submit receipts and documentation for reimbursement, ensuring a streamlined process for accessing their funds for qualified expenses.
Use Cases
- Paying for prescription glasses, contact lenses, and related accessories.
- Covering the costs of Lasik eye surgery or other vision correction procedures.
- Funding various dental treatments, including fillings, crowns, and root canals.
- Managing orthodontic expenses for braces or aligners.
- Purchasing eligible dental hygiene products like Waterpik devices.
Features
Visibility
- Account Balance Tracking: Users can easily view their current LPFSA balance and contribution history through their online account.
- Eligible Expense List Access: Provides access to a comprehensive list of qualified dental and vision expenses covered by the LPFSA.
- Claims Submission Portal: A dedicated online portal for submitting receipts and documentation for eligible dental and vision claims.
- Claims Management: Tools to track the status of submitted claims and manage documentation for reimbursement.
Support
- Online Help Center: Access to a collection of articles and guides covering LPFSA basics, getting started, and claims submission and management.
Technical Specifications
- Architecture
- Cloud-native architecture leveraging Microsoft Azure and open-source technologies.
- Deployment
- SaaS
- Authentication
- SSO, Passkey (FIDO2)
- API Available
- Yes
Infrastructure
- Azure
Pricing
- Model
- Employer-sponsored, employee pre-tax contributions
- Starting Price
- Contact sales
- Target Customer
- Mid-Market,Enterprise
- Contract Type
- Annual
- Free Trial
- No
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.