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Flexible Spending Accounts - FSAs & LFSAs

Flexible spending accounts (FSAs) and other accounts associated with Consumer-Directed Health Plans, help put more decision-making back into the hands of the actual consumer of health care, the member.

Why choose to include a Flexible Spending Account?  The Flexible Spending Account (FSA) is a tax-savings benefit authorized by the IRS, that when used in conjunction with a Consumer-Directed health plan enables employees to maximize the utilization of their health care dollars.  FSA dollars are deducted from employee paychecks on a pre-tax basis, in increments that the employee selects, and can be utilized to pay for qualified health expenses in addition to co-pays, prescriptions, and additional qualified, non-covered expenses. 

Eligible FSA expenses include co-pays, prescriptions, glasses and orthodontics. Non-eligible expenses include cosmetic surgery, teeth bleaching, electrolysis, and over-the-counter items.

FSAs do not roll over from year to year, but an optional Grace Period can be elected to allow employees to use up untouched FSA funds.

FSAs are recommended for pairing with HRA structured plan designs.  Limited Flexible Spending Accounts, or LFSAs are recommended for pairing with Health Savings Accounts (HSAs).   Meritain Health recommends the utilization of FSA dollars before Health Reimbursement Account (HRA) dollars in satisfying the high-deductible portion of a Consumer-Directed plan.