HSA for employee only, FSA for dependents

[Guest Gary Rouse]

An employee is covered under the employer sponsored HSA but the HSA has no family coverage. Can the employee participate in the employer's FSA to cover expenses incurred by his/her dependents (that are not covered at all by the HSA)?

[Guest fritzreb]

An employee covered under an individual HSA eligible health insurance plan and making contributions to a Health Savings Account will not be able participate in a Flexible Spending Account unless the employer establishes a "limited use" FSA. The HSA eligible high deductible health insurance plan will only provide insurance coverage for the employee. The Health Savings Account funds can be withdrawn for his eligible medical expenses AND the medical expenses of his dependents. HSA funds can be withdrawn for medical expenses not associated with the health insurance plan such as dependent medical expenses, dental, vision, etc. The health insurance plan only provides coverage for the particpants (only the enrolled employee) but the Health Savings Account funds can be withdrawn for eligible medical expenses for the employee and his dependents.

If the employer wants to offer an FSA for individuals who have have employee only HSA high deductible insurance coverage and a Health Savings Account, the employer must establish a "limited use" FSA and specify what expenses are eligible for reimbursement. Those expenses can include dependent medical expenses and must exclude expenses related to the employee deductible expenses associated with the employee only coverage HDHP.

[Guest Gary Rouse]

Thanks.