Can an employer purchase a stand-alone FSA?
• No, we will not offer any FSA plans without a BlueCross BlueShield of Tennessee medical plan. Pursuant to the Internal Revenue Code, FSAs cannot discriminate in favor of highly compensated or key employees. Under certain conditions, the non-discrimination requirements of a FSA may limit eligibility for participation. Therefore, as part of our administrative services, BlueCross BlueShield of Tennessee performs non-discrimination testing for our employers.
