BN - WED - UW_BN_LPFSA_NO_HDHP
This WED identifies employees currently elected in a Limited Purpose Flex Spending Account (LPFSA) plan, but is not elected in High Deductible Health Plan (HDHP). HDHP participation is a prerequisite for LPFSA election. This must be corrected by either removing the LPFSA election, or correcting the State Group Health election to HDHP equivalent. All corresponding deductions should also be reconciled.
- The employee must be enrolled in a HDHP and an HSA, OR the employee's spouse must be enrolled in HDHP for the employee to be eligible to be enrolled in Limited Purpose Flexible Spending Account (LPFSA).
1. Log into HRS. The Workflow Exception Dashboard queries will appear based on your current security and whether there is an error to fix. Use TE - WED - Workflow Exception Dashboard for additional guidance.
2. Click on the UW_BN_LPFSA_NO_HDHP query hyperlink in the Workflow Exception Dashboard (WED).
3. A current list of employees who are enrolled into LPFSA but not enrolled in HDHP will be displayed. This list will be refreshed each evening. (Note: Empl_ID's that appear as hyperlinks in the list have more than one error.)
4. Click the 'Check to Claim' checkbox next to the person you wish to work with and your name will appear in the Claimed By section with the date and time noted.
5. Click the FSA_BENEFITS hyperlink for the employee you have claimed.
6. The employee's Spending Accounts enrollment pages will be displayed.
7. Institution Benefit Administrator must contact employee. A guided script email for communication to employees:
You are receiving this email because you have selected an LPFSA for xx/xx/xxxx, but did not make an HDHP/HSA election. Per IRS Guidelines, employees must be enrolled in HDHP and an HSA to be eligible for this plan, OR their spouse must be enrolled in HDHP Family plan in order for employee to elect an LPFSA.
Please respond immediately. You must complete HDHP/HSA enrollment form or you must provide proof of spousal HDHP family plan coverage by end of the business day on xx/xx/xxxx.
If the LPFSA election remains in the system without a HDHP and HSA enrollment, or documentation of spousal HDHP coverage is not provided within 30 days of qualifying event, then we will remove the LPFSA enrollment.
8. If the employee is covered under a spouse HDHP, they must provide HDHP proof of insurance within 30 days of the Qualifying Event (60 days for birth) to the institution Benefit Administrator.
a. The Benefit Administrator must document the other coverage information by updating the Other Health Insurance fields using BN - Entering and Updating Benefits Personal Data.
b. If other HDHP proof of insurance is not submitted timely, then the Benefit Administrator will communicate to the employee that they are not eligible for an LPFSA.
c. Institution Benefit Administrator will create an FSA Event, or reprocess the existing ADM or FSA Event for the same Event Date as the LPFSA enrollment coverage begin date and cancel the plan.
9. NOTE: If the employee meant to enroll in an FSA Medical plan, the Benefit Administrator needs to collect a new application within 30 days of Qualifying Event and then change the Benefit Plan using On-Demand Event Maintenance.
a. Create an FSA Event or reprocess the existing ADM or FSA Event for the same Event Date as the LPFSA enrollment and change the coverage from LPFSA to FSA Medical or remove the LPFSA coverage.
10. Please follow these documents for User Procedure steps: BN - Reprocessing Events Using On Demand Event Maintenance, BN - Enrolling, Changing, or Canceling Coverage Using On Demand Event Maintenance, and BN - Adding Events to the BAS Activity Table.
11. If deductions have already been taken for the LPFSA plan, institution Benefit Administrator needs to create a ticket with their Affinity Group. UWSC Benefits Team will work with TASC to refund any contributions or move contributions from the LPFSA to the new FSA Medical account.
- BN - Review Benefit Enrollments
- BN - Adding Events to the BAS Activity Table
- BN - Enrolling, Changing, or Canceling Coverage Using On Demand Event Maintenance
- BN - Reprocessing Events Using On Demand Event Maintenance