Why does obamacare limit fsa

For a more detailed timeline of all items resulting from Obamacare, check out the Health Reform Implementation Timeline from the Kaiser Family Foundation. Simplifying the complexity of benefits for maximum savings and peace of mind. We would love to chat with you about your current benefits offerings and best practices that may save you and your employees even more. Search through our interactive database of videos, flyers, tutorials, and other tools to help maximize your BRI experience.

BRI combines expertise and excellence to provide premier ongoing support to employers and participants, backed by experts and technology you can trust. We offer growth opportunities and competitive benefits. Join a great place to work! Back Share via:. Subscribe Today. Ready to take the next step? Jefferson City Office St. However, this depends on the rules your employer has established for the LPFSA account that is offered. A regular FSA lets you use pretax dollars to pay for qualified medical expenses, including dental and vision expenses.

You can only use an LPFSA to pay for any qualified medical expenses after you meet your health insurance deductible, and only if your employer has set up its plan to allow this use of LPFSA funds.

The amount is usually increased each year to account for inflation. However, employers can choose to place a lower limit on contributions. Also, even though your employer will withdraw your LPFSA contributions in equal amounts from each paycheck throughout the year, the entire balance is available to you at the beginning of the year. The same is not true of your HSA balance, which only becomes available as funds are deposited.

Then you can use that information to create a list of your projected qualified dental and vision expenses for the coming year. With this amount, you can be fairly confident that you will spend the entire balance. Like a regular FSA, it's possible you could lose any unused balance at—or shortly after—the end of the year. Some plans either allow you to roll over up to a certain amount for the following plan year or allow for a grace period.

And the plan might not have either a rollover option or a grace period. For and , though, special rules apply. Due to provisions of the Consolidated Appropriations Act, employers can allow all unused funds to be carried over from to and from to Or, employers can extend the grace period to 12 months, rather than 2.

Either way, all unused funds can be carried over and used throughout the entire year. In order to be eligible for a limited purpose FSA, you must be enrolled in a high-deductible health plan and use a health savings account.

It's a set number of days after the plan year ends that allows you to submit claims for eligible expenses incurred during the plan year. Not all plans have this feature. Your plan summary description will detail whether or not it is included. LPFSAs can be a great way to reduce your dental and vision expenses—and in some instances, your other qualified medical expenses—when you have an HSA.

Internal Revenue Service. Accessed Sept. Anthem Blue Cross Blue Shield. Health Insurance.