Limited Expense Health Care Flexible Spending Account
(LEX HCFSA)
Washington, DC, November 10, 2005 -- United States Office of Personnel Management (OPM) Director Linda M. Springer today announced a new option under the FSAFEDS Program, a limited expense health care flexible spending account (LEX HCFSA) for Federal employees enrolled in high deductible health plans (HDHP) with health savings accounts (HSA).
"We're pleased to offer this added benefit to federal employees who have taken advantage of HSAs offered in the Federal Employees Health Benefits program, to stretch their money even further," said Springer. "Federal employees work hard for their money and they sacrifice, so it is imperative they be given every opportunity to realize tax savings for themselves and their families."
Talking Points
- FSAFEDS offers a Limited Expense Health Care Flexible Spending Account (LEX HCFSA) for eligible employees in FEHB high deductible health plans (HDHP) with a health savings account (HSA).
- The Limited Expense Health Care Flexible Spending Account (LEX HCFSA) covers eligible dental and vision care expenses only.
- HDHP enrollees with an HSA are not eligible to enroll in general purpose health care flexible spending accounts (HCFSAs), according to Section 125 of the Internal Revenue Code.
- However, those employees can have both an HSA and a limited expense HCFSA.
- SHPS, Inc. (the third party administrator for FSAFEDS) administers the LEX HCFSA accounts.
- To enroll in a LEX HCFSA (during the annual Federal Benefits Open Season or within 60 days after becoming a newly hired or newly eligible employee), go to www.FSAFEDS.com.