Flexible Spending Account Debit Cards Are Here

Effective January 1, 2010, just swipe your card to be reimbursed

September 1, 2009
U.S.-payroll employees eligible for Chevron U.S. health plans

Do you like the idea of saving money tax-free for health care and dependent day care expenses, but don't have the time or simply forget to fill out claim forms? Then you might want to give the flexible spending account plans a second look during the October open enrollment period.

Effective January 1, 2010, both of Chevron's flexible spending account plans - the Health Care Spending Account (HCSA) and the Dependent Day Care Spending Account (DCSA) - will distribute a special purpose debit card to HCSA and DCSA participants. The debit card is tied to your FSA account(s). Just swipe your card when you incur an eligible health or dependent day care expense, and the amount is automatically deducted from your account. There is no need to pay out of your pocket up front, and no need to file claims if you are able to use the card to pay for your expense. Of course, you always have the option to continue to submit a paper claim, if needed.

In general, your FSA debit card may be used at hospitals, doctor's offices, many retailers and grocers, pharmacies and some dependent day care centers. For a list of participating merchants that are currently certified to accept FSA debit cards, visit www.SIG-IS.org and select IIAS Merchant List from the left navigation. You can also ask the retailers and day care centers you frequent if they accept FSA debit cards. Debit cards, including information about their use, will be released to participants late this year.

The HCSA and DCSA flexible spending account plans generally haven't changed; we've just made it easier to access your account to pay for eligible expenses. Each plan lets you contribute up to $5,000 a year on a before-tax basis. The Health Care Spending Account (HCSA) is used to pay for eligible health care expenses for you and your tax dependents. The Dependent Day Care Spending Account (DCSA) is used to pay for eligible daycare expenses for your tax dependents. As a reminder, funds in your Health Care Spending Account can't be used to pay for Dependent Day Care Expenses, and you cannot transfer money from your DCSA to your HCSA, or vice versa. In addition, you must incur eligible expenses from January 1 through December 31 of each year. Any funds not spent by December 31 will be forfeited.

If you take the cardiovascular risk assessment by October 30, 2009, you'll receive a $100 credit to your HCSA on January 1, 2010. If you are already enrolled, your credit will be automatically added to your account, in addition to the amount you've elected to contribute. Learn more.

Many of the out-of-pocket expenses covered by the FSA plans can be paid using your debit card at a participating merchant:

  • Coinsurance and deductible amounts at in-network medical, dental and vision providers.
  • Prescription drugs coinsurance and deductibles.
  • Copayments.
  • Over-the-counter medicines you and your eligible dependents take to treat illness or relieve pain.
  • Dependent day care expenses (if you have elected the DCSA account and the facility accepts FSA debit cards).
  • More examples of eligible health expenses.

Additional Information for U.S.-Payroll Expatriates Working Outside the U.S.

U.S.-payroll expatriates will receive a debit card if you enroll for the FSA plan(s) or if you receive the cardiovascular Wellness Credits. However, you cannot use the debit card at an overseas merchant. You’ll need to submit a paper claim and your receipts for any expenses incurred while you are outside the U.S. You can still use the card anytime you return to the U.S. on vacation or business. Keep in mind, all the previous methods of FSA reimbursement will remain in place, the new debit card is just an additional option from which to choose. In addition, everything is tied to your FSA account(s), so you will be reimbursed and your account adjusted accordingly, no matter what method you choose for reimbursement. More information will be released later this year.

Please note: The information in this newsletter edition applies to U.S.-payroll employees eligible for Chevron health benefits. This communication provides only certain highlights of benefits provisions. It is not intended to be a complete explanation. If there are any discrepancies between this communication and legal plan documents, the legal documents will prevail to the extent permitted by law. This is not a plan text or a summary plan description. There are no vested rights with respect to Chevron health care plans or any company contributions toward the cost of such health care plans. Rather, the plan sponsor and Chevron reserve all rights, for any reason and at any time, to amend, change or terminate these plans or to change or eliminate the company contribution toward the cost of such plans. Such amendments, changes, terminations or eliminations may be applicable without regard to whether someone previously terminated employment with Chevron or previously was subject to a grandfathering provision. Some benefit plans and policies described in this document may be subject to collective bargaining and, therefore, may not apply to union represented employees.