two ways to save
Chevron’s medical plans offer access to one of two ways to set aside money to help pay for health care costs later.
All of Chevron’s medical plans offer access to one of two tax-advantaged accounts, either the Health Care Spending Account (HCSA) or a health savings account (HSA). The premise of these accounts is simple. You contribute money, and later you can use the money in your account to help pay for certain out-of-pocket health care costs.
The Health Care Spending Account (HCSA) is a flexible spending account. This account is designed for short term spending. The account only lasts for the calendar year, and any unspent and unclaimed money after the annual deadline will be forfeited. The focus for this account is on setting aside a small amount of money and spending it all as soon as you can.
The health savings account (HSA) is exactly that, a savings account for your health care. This account is designed for long-term savings so the focus is on putting in as much money as you can. This means there is no pressure to use the money in your account right away. If you want to pay for an expense out-of-pocket and keep the money in your account, you can. If you would rather use the money in your account, that’s your choice too.
HCSA and HSA may look the same, but they serve two very different purposes. Enrolling in either health account is a voluntary choice, and the account you can use varies based on the medical plan you choose. In addition, you can’t be enrolled in both accounts at the same time. This side-by-side comparison highlights how they’re similar and how they’re different.