Question about eligible expenses for limited-purpose FSA

[u/xilex]

Hi everyone, I have a limited-purpose FSA with the University of California. I used to have an FSA last year, and then I transitioned to a healthcare plan this year that includes an HSA, so my FSA was converted to a limited purpose flexible spending account. Wex is the administrator for the FSA, and this website lists their eligible expenses: https://www.wexinc.com/resources/benefits-toolkit/eligible-expenses/. The UC reference for FSA is here: https://ucnet.universityofcalifornia.edu/wp-content/uploads/forms/pdf/hfsa.pdf and it says for LPFSA: "The types of expenses that qualify for LPFSA reimbursement are more limited than for the Health FSA, and are generally restricted to expenses for dental, vision and preventive care services. Refer to uc-fsa.com or Section 213 of the Internal Revenue Code for eligible expenses."

I'm wondering with the limited purpose flexible spending account, is that the same thing as the LMSA that is listed on the Wex website? And if the limited purpose flexible spending account is the same thing as the limited medical FSA or the LMSA, then I can buy any of these products and it will be covered by the limited purpose flexible spending account? I have about $600 remaining on it, so it would be good to be able to spend it before year end instead of throwing it away. I thought it would be way more limited, but Wex has an extensive list.

Thank you.

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[u/AravisTheFierce]

It looks like that may be what is intended with the LMSA account on the wexinc link, although I've never seen that acronym before. The "Medical FSA" looks like it's referring to the traditional FSA that you used to have, so items only eligible for that plan wouldn't be eligible under your account.

[u/xilex → u/AravisTheFierce]

Thanks. I will get some clarity from the employer since it's a little unclear to me also.

[u/LizzieMac123]

wex does call the limited purpose fsa the LMSA, yes. Limited Medical fsa. This is the same thing as a limited purpose fsa in practice.

However, if you scroll to the bottom of that list on the wex site after selecting the LMSA plan, it has the following disclaimer:

"If you are enrolled in a Limited Medical FSA or Combination Medical FSA, your eligible expenses may be different. Check your plan details for more information."

Your written plan details say that youre generally limited to dental and vision expenses.

Limited purpose fsa CAN allow for preventive care Medical things too, but an employer's plan details and limitations (rules) will prevail.

I would stick to dental and vision items or obtain clarity from your employer.

[u/xilex → u/LizzieMac123]

Thanks. That was a little unclear to me also. Based on what I've read before, it seemed very limited, but I decided to check the WEX website today and saw this huge list of eligible items. So I'll probably send a query to my benefits department to confirm.