November Mailbag: Your FSA Questions

Happy November, FSAstore.com customers! Each month, we receive FSA questions from Flexible Spending Account (FSA) holders who are looking to understand the finer points of their healthcare benefits, and the sometimes confusing regulations that surround these accounts.

Here are a few of the best FSA questions we've received this month that could prove useful:

Can I sign up for a Health Savings Account (HSA) if my spouse has a general purpose FSA?-Ethan, Austin, Texas.

You will not be eligible for an HSA if your are also covered by any other benefit that provides first-dollar coverage for medical products and services. However, there are a few exceptions that could give you the opportunity to sign up for an HSA if you so desire.

First, a limited purpose FSA does not provide first-dollar coverage, therefore it will not prevent you from opening an HSA. Additionally, FSAs in which you are not covered will not prohibit you from opening an HSA. In other words, if your spouse is enrolled in an FSA but doesn’t cover you as a dependent, you would still qualify for an HSA.

Also note that your ability to apply for HSA eligibility is also tied to the structure of your spouse's FSA. For instance, if you are covered under your spouses’ FSA and the FSA allows the carryover of funds into the following year, your HSA ineligibility would continue throughout the following year. Ultimately, you should weigh the choice of an HSA or FSA based on the benefits that are provided by both employers, your long-term spending and savings plans and comparable contribution limits between the two accounts to make the best choice. Your HR department may be able to help you with additional questions.

I submitted a Letter of Medical Necessity to cover my acupressure treatments, but I am approaching a new plan year. Do I need to submit an additional LMN to continue my treatments? -Kathryn, Salt Lake City, Utah.

A Letter of Medical Necessity from a physician is required for certain medical products and treatments to be eligible for reimbursement under a flexible spending account (FSA), health savings account (HSA) or health reimbursement arrangement (HRA). These documents are submitted to your benefits administrator at the beginning of your treatment plan, and your physician's letter must outline how your acupressure treatments will be used to alleviate a specific medical condition and how long the treatment plan will last.

However, if your treatment schedule will go on longer than expected, an additional Letter of Medical Necessity may need to be submitted to your benefits administrator to cover the acupressure expenses in the coming year.

Thanks so much to our customers for another month of great questions! Feel free to visit our social media pages to submit your inquiries, and visit FSAstore.comand HSAstore.com to maximize the use of your healthcare benefits!