FSAs and HSAs

[Guest AHayhow]

Is it in a TPAs best interest to add a box on the FSA enrollment form for employees to indicate that they are enrolled in a HDHP + HSA option and to use this information to limit reimbursement of expenses to dental and vision?

Since HSAs are "self-policed," what are the FSA administrator's responsibility to ensure that expenses being reimbursed are within the guidelines of the medical plan the employee and/or dependents are enrolled in?

Specifically, we have employer groups who do not offer a limited purpose FSA, however, their employees are enrolled in a spouse's HDHP + HSA option and still want to run orthodontia through their employer's FSA plan.

Thanks

[leevena]

Your suggested solution may not solve the problem. Is the employer and agent/consultant aware of this problem? It sounds like someone needs to inform the employer and employees and make sure everyone, including the TPA understands the rules.

You are correct about the TPA responsibility about the HSA, it is not their responsibility. The individual enrolled is at risk.