What Does an LPFSA Cover That an HSA Doesn't? - Exploring the Differences Between LPFSA and HSA

When it comes to managing healthcare expenses, familiarizing yourself with different account options can help you make informed decisions. One common question that arises is: What does an LPFSA cover that an HSA doesn't?

Let's break down the key differences between a Limited Purpose Flexible Spending Account (LPFSA) and a Health Savings Account (HSA) to understand what each account may cover:

LPFSA vs. HSA:

• LPFSA: A Limited Purpose FSA is designed to cover specific healthcare expenses that are not typically covered by an HSA.
• HSA: A Health Savings Account is available to individuals enrolled in a high-deductible health plan and can be used to pay for qualified medical expenses.

Expenses Covered by LPFSA That an HSA Doesn't Cover:

• Dental and vision expenses: LPFSA may cover dental and vision expenses, including exams, cleanings, eyeglasses, and contact lenses.
• Over-the-counter medications: LPFSA may allow reimbursement for certain over-the-counter medications with a prescription.
• Insurance premiums: LPFSA may cover certain insurance premiums, such as vision or dental insurance premiums.
• Dependent care expenses: LPFSA may cover dependent care expenses for children or elderly dependents.

While both LPFSA and HSA offer tax benefits and help you save on healthcare expenses, understanding the specific coverages of each account can help you maximize your savings.

It's essential to review your healthcare needs and expenses to determine which account aligns best with your situation. Consulting with a financial advisor or benefits specialist can also provide personalized guidance based on your unique circumstances.

Understanding the distinction between a Limited Purpose Flexible Spending Account (LPFSA) and a Health Savings Account (HSA) is critical in making informed financial choices regarding your healthcare expenses.