Limited Flexible Spending Account
Effective October 1, 2020
*For HSA Plan Participant Use Only
If you participate in the City of Pearland Health Plan High Deductible Health Plan and participate in a health savings account, you can only enroll in the limited purpose health care FSA, not the standard health care FSA. The limited purpose health care FSA allows you to reimburse yourself for eligible dental and vision expenses. Dental and vision expenses are also eligible under your health savings account, but you cannot claim the same expenses on both accounts. You cannot submit medical, prescription drug, or over-the-counter medication expenses to your limited purpose health care FSA for reimbursement — those expenses are eligible only for reimbursement from your health savings account.
Can you use your HSA?
Can you use your limited purpose health care FSA?
If you have both an HSA and a limited purpose health care FSA…
Medical expenses you incur, such as your deductible and coinsurance costs
Yes
No
Prescription drug expenses you incur
Yes
No
No. Some over-the-counter medications for dental care and vision may be eligible for reimbursement.
Yes, with doctor's prescription
Over-the-counter (OTC) medication expenses
Dental expenses, such as visits to the dentist and orthodontia (unreimbursed expenses only)
Yes
Yes
Vision expenses, such as eyeglasses and contact lenses. If enrolled in the Vision Benefits, these would be expenses remaining out of your pocket after the Vision benefit is paid.
Yes
Yes
IRS limitations on flexible spending accounts
• Expenses reimbursed from an FSA cannot be claimed as a medical expense on your tax return. • Only expenses actually incurred during the calendar year are eligible for reimbursement. Expenses incurred before or after the eligibility period are not eligible, regardless of when you paid for the expenses. FSAs may not reimburse for future or projected expenses. • If you do not use all the pre-tax dollars in your flexible spending account, you forfeit the amount left over. That's an Internal Revenue Service requirement.
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