True or False: An enrollment prerequisite must be configured if a company offers both an HSA and Medical FSA plan.

The statement is true. When a company offers both a Health Savings Account (HSA) and a Medical Flexible Spending Account (FSA), it's necessary to establish enrollment prerequisites due to the regulatory implications and the nature of how these accounts interact.

Specifically, the IRS has rules regarding the eligibility to contribute to an HSA, which generally requires that employees be enrolled in a high-deductible health plan (HDHP) and not be participating in other health plans that could disqualify them from HSA contributions, such as a traditional Medical FSA which allows for pre-tax contributions for a wide range of medical expenses. To ensure compliance with these regulations and to avoid conflicts in enrollment, prerequisites can be set up to specify eligibility criteria for enrollment in either plan. This aids in managing how benefits are offered and utilized by employees, ensuring they are adhering to tax advantages associated with HSAs and FSAs appropriately.

Thus, configuring enrollment prerequisites is an essential step for employers providing both types of plans, as it helps maintain compliance with IRS rules and protects employees' interests in maximizing their benefits.