CSI Flexible Benefits Plan and Health Savings Accounts (HSA)

The CSI Flexible Benefits Plan (a Section 125 plan) consists of three separate accounts that operate in connection with your health insurance coverage: premium account, flexible spending account and the dependent care expense account. Participants can choose to participate in any of these accounts.
Beginning September 1, CSI will be offering two new health plans: a health savings account with a $1,000 deductible (HSA 1) and with a $2,500 deductible (HSA 2).

Using a Flexible Spending Account with a Health Savings AccountThe IRS has recently issued additional guidance on the use of flexible spending accounts (FSA) in conjunction with health savings accounts (HSA).
If you are covered by an HSA plan, you are not permitted to have health coverage other than the health plan that is connected to the HSA. Because the IRS considers the FSA portion of a Flex plan to be health coverage, an FSA is not permitted for expenses covered by the HSA plan. This includes expenses that are covered by the HSA but may be initially applied to the deductible. You may use an FSA account for expenses not covered by the HSA such as vision and dental expenses.
For example, you visit your doctor and then go to the pharmacy to fill a prescription. The total cost of these expenses is covered by your HSA but is applied to your deductible. Even though you paid these expenses out-of-pocket, they are not eligible for reimbursement under your FSA. However, they are eligible under your HSA account.
You also visit your dentist and the expense is covered by your dental policy, not by the HSA. You may use an FSA for any portion of this expense not covered by the dental policy. 

Using the Premium and Dependent Care Expense Account with an HSA Plan
The premium portion of the CSI Flexible Benefits Plan as well as the dependent care expense account can be used with or without an HSA plan.

Full Issue: No. 48 - August 4, 2004

Back to Flexible Benefits Updates