If you are covered under a High Deductible Health Plan (HDHP) and are also making contributions to a Health Savings Account (HSA), there are restrictions on any other coverage you have. Specifically, you must not have access to any plans that would provide coverage for medical expenses prior to the specific point in the calendar year when you have met the minimum deductible for HDHP plan (as specified by the IRS). Because of this rule, in order to remain eligible to make HSA contributions, if you also want to elect coverage under a Flexible Spending Account (FSA), you must make sure to elect a Limited Purpose FSA. This restricts eligible reimbursements from your account to dental and vision expenses and, in some cases, medical expenses after you have satisfied the minimum deductible.
Once you have met the annual minimum deductible for High Deductible Health Plans, you may convert your Limited Purpose FSA to a regular FSA. Upon doing so, eligible medical expenses will then be reimbursable from your FSA.
2019 Minimum Deductibles
Individual Coverage: $1,350
Family Coverage: $2,700
Documentation Required to Convert
To convert your Limited Purpose FSA to a regular FSA, you will need to provide an Explanation of Benefits (EOB) from your medical insurance carrier that specifies the date you met the statutory deductible.
Typically, this would be found in the summary section of the EOB that lists the cumulative deductible and out-of-pocket expenses. The point at which your cumulative deductible meets the statutory deductible (that is, the minimum deductible required by the statute) is the date you can convert your Limited Purpose FSA to a regular FSA.
To submit your conversion request, e-mail email@example.com and include a copy of your EOB that confirms you have met the minimum deductible. In the e-mail, you will also need to state your request to convert your Limited Purpose FSA to a Regular FSA.