Glossary - L

Last Month Rule

The Last Month Rule states that if you are covered by an HSA eligible health plan on the first day of the last month of a given year, you are considered an eligible individual for the entire year.

Limited Purpose FSA/ HRA

Spending accounts that restrict reimbursements to certain permitted benefits such as vision, dental or preventive care benefits. Limited purpose Flexible Spending Accounts (FSAs) or Health Reimbursement Arrangements (HRAs) may be combined with an HSA, depending on plan design.

Long-term Care Insurance

An insurance product sold to individuals that helps provide for the cost of future medical care expenses that are generally not covered by health insurance, Medicare, or Medicaid.