health care spending account (HCSA)

The Chevron Health Care Spending Account (HCSA) is a flexible spending account plan. A flexible spending account plan is a voluntary option that allows you to pay for certain eligible out-of-pocket health care expenses with before-tax dollars. Each month, you contribute a set amount to your account through before-tax payroll deductions. Then you use the funds in your account to pay for eligible expenses. You must re-enroll in this plan every year during open enrollment to continue your participation, even if you're already currently participating.

Important Restrictions to Know About

If you enroll in the Chevron High Deductible Health Plan (HDHP) or the Chevron High Deductible Health Plan Basic (HDHP Basic), you cannot enroll in the HCSA. And if you are enrolled in the Health Care Spending Account (HCSA), you cannot open or contribute to the BenefitWallet health savings account (HSA).

• This means that if you change to the HDHP or HDHP Basic mid-year due to a qualifying life event, you will not be permitted to open and contribute to the BenefitWallet HSA if you had previously elected to enroll in the HCSA for the calendar year. You'll need to wait until the next year to open and contribute to an HSA.  
• This means that if you leave an expatriate assignment and want to enroll in the HDHP or HDHP Basic, you will not be permitted to open and contribute to the BenefitWallet HSA if you had previously elected to enroll in the HCSA for the calendar year. You'll need to wait until the next year to open and contribute to an HSA. 

Your contributions to flexible spending accounts reduce your taxable income. For this reason, federal tax laws require you to follow certain rules when using the funds in your account. Keep these rules in mind as you plan how much to contribute each year:

• Use it or lose it. Meet the plan deadlines. This plan does not typically have a carryover feature. The money in your flexible spending account can be used only for eligible expenses incurred between January 1 and December 31 of each year. You have until June 30 of the following year to submit your claims for expenses, but any remaining balance left in your account after the final claim filing deadline will be forfeited. Note: If you enroll mid-year, you can only claim eligible expenses you incurred after the date your coverage began.
• If you are enrolled in a high deductible health plan (HDHP or HDHP Basic), you are not eligible to enroll in a health flexible spending account. You may, however, be eligible to contribute to a health savings account (HSA).
• Plan your contribution goal carefully. Once you've elected an annual contribution amount, you cannot change it unless you experience certain qualifying life events, for example, you have or adopt a child. 
• Only certain expenses are eligible. The money in your account(s) can be used only for eligible expenses. It's important to make sure that any expenses you've planned are reimbursable.
• Your account has a specific purpose. You cannot use money in a health care flexible spending account to pay for dependent day care expenses. Likewise, you cannot use money in a dependent day care flexible spending account to pay for health care expenses.
• There are rules regarding your contributions. The IRS limits the amount you can contribute to a flexible spending account, and the limit may change from year-to-year.
• Be aware of mid-year enrollment. If you enroll, the amount of before-tax contributions you authorize is deducted from your pay in equal amounts throughout the year and credited to your flexible spending account. Keep this in mind if you are enrolling for the first time late in the year because your election will be spread out over fewer pay periods and could be a larger payroll deduction than you planned for. 

Employees

• You can enroll in the HCSA if you're a U.S.-payroll employee and you're eligible for Chevron's health benefits.
• You cannot participate in the Heath Care Spending Account (HCSA) at the same time you participate in a high deductible health plan, including the Chevron High Deductible Health Plan (HDHP) or the Chevron High Deductible Health Plan Basic (HDHP Basic). Likewise, if you are enrolled in the HCSA, you cannot open or contribute to a health savings account (HSA). For example, this means that if you change to the HDHP or HDHP Basic (and drop your HCSA coverage) mid-year due to a qualifying life event, or if you leave an expatriate assignment and want to enroll in the HDHP or HDHP Basic, you cannot open and contribute to an HSA if you have already elected to enroll in the HCSA during the current calendar year.

Dependents

Under the Health Care Spending Account, an eligible dependent whose expenses can be reimbursed includes any person you can declare as a dependent on your federal income tax return for the year. 

• Federal tax law does not permit you to claim expenses for your domestic partner or your domestic partner’s children, unless they qualify as dependents on your federal income tax return for the year. 
• This person does not have to be enrolled as a dependent under any company-sponsored benefit plan. 
• When you enroll in this plan, you do not make an election to enroll your dependent(s) for coverage. 
• The dependent verification process does not apply to this plan.

The IRS limits the amount you can contribute to a flexible spending account, and the limit may change from year-to-year. You cannot contribute more than the IRS annual limit each year. However, employers, like Chevron, are permitted to set an annual limit for their plans that may be less than the IRS annual limit. 

2024 contribution limits

Chevron does not contribute to the HCSA.

The employee contribution limit for the HCSA:

• $120 is the minimum contribution.
• $3,050 in 2024 per individual.*
• This contribution limit applies to all of the contributions you have made to a health flexible spending account plan during the current calendar year – including a similar plan through another employer. 
• If your spouse is eligible to make contributions to a health flexible spending account, under IRS rules, each of you may contribute up to the maximum IRS annual limit to your own health flexible spending account. This applies even if both spouses participate in the same health flexible spending account plan sponsored by the same employer.

*Note: Employers, like Chevron, are permitted to set an annual limit for their plans that may be less than the IRS annual limit. The IRS typically announces increases to health flexible spending account limit (if any) for the new year after Chevron has completed open enrollment-related activities. For this reason, should the IRS choose to increase the limit in 2024, Chevron is unable to change the HCSA maximum contribution limit for the 2024 plan year to align with any potential new IRS limit increase.

2023 contribution limits

Chevron does not contribute to the HCSA.

The employee contribution limit for the HCSA:

• $120 is the minimum contribution.
• $2,850 in 2023 per individual. 
• Update: The IRS recently announced that employers may choose to increase their health flexible spending account limit for 2023, at their discretion. Due to the timing of Chevron’s open enrollment and the timing of the IRS decision, Chevron is unable to change the HCSA maximum contribution limit for the 2023 plan year to align with the new IRS limits. 
• This contribution limit applies to all of the contributions you have made to a health flexible spending account plan during the current calendar year – including a similar plan through another employer. 
• If your spouse is eligible to make contributions to a health flexible spending account, under IRS rules, each of you may contribute up to the maximum IRS annual limit to your own health flexible spending account. This applies even if both spouses participate in the same health flexible spending account plan sponsored by the same employer.

A HCSA debit card will be issued to you for use on qualified health care expenses only under the Chevron Health Care Spending Account (HCSA). 

• If this is your first time to participate in the HCSA, you will automatically receive a debit card. 
• No claim forms are required. Swipe your card and the special purpose debit card transfers funds for qualified expenses directly from the available funds in your HCSA.
• You can only use the card to pay for eligible expenses, up to the amount you elected for the year.
• Keep your card(s) even if you’ve used your entire account balance; just like your bank debit card they can be reused if you participate again next year. 
• The expiration date on your card has no connection with your plan's claims deadlines and may be different from the end date for your plan.
• New cards for existing members will not be reissued, unless your card is set to expire during the year or there's been another plan update that necessitates a new card.
• The debit card can only be used for purchases inside the United States, so if you incur an expense outside the U.S., you’ll need to submit a claim form (online or by paper) to request reimbursement. 
• In general, you do not have to submit receipts for reimbursement, but there may be some instances in which substantiation is required. You will be notified if this applies to you. 
• No matter what, IRS guidelines still require you to save your itemized receipts as part of your tax records. 
• When using your card, you are certifying use for qualified health care expenses.
• Call the claims administrator if you have questions, have lost your cards, or have not received your cards. 

Need to order a debit card for your dependent?

• Login to your HCSA account on the website or through the mobile app.
• Navigate to your Spending Account Dashboard.
• Choose your name in the upper right corner, then select Add Family Member.
• Once the dependent has been added, you will receive a debit card in the mail within 7 to 10 business days.

Only eligible expenses can be reimbursed under the HCSA. These expenses are defined by IRS rules (See IRS Publication 502) and HCSA plan rules.

The HCSA can reimburse health-related charges for you and your eligible federal tax dependents that satisfy all the following requirements:

• Are not already reimbursed under a medical, prescription drug, dental, vision or other health care plan; double dipping is not permitted. In addition, expenses reimbursed under the HCSA may not also be deducted when you file your tax return. 
• Are the types of expenses that you could claim as a tax deduction. The IRS says that this includes items and services that are meant to diagnose, cure, mitigate, treat, or prevent illness or disease. Transportation for medical care is also included, unless that transportation has already been reimbursed under a travel reimbursement benefit under your health plan. 
• Are incurred during the calendar year while you're a participant in the HCSA. This means the date of service must be within the current plan year while you were an active participant in the plan; it's not the date when you are billed for and consequently pay for the service. 

Eligible Expenses

You can preview a list of expenses that are generally considered an eligible expense in the HCSA summary plan description (see plan documents section on this page). For a complete list of items that may be considered qualified expenses or exclusions under the plan, access your HCSA account online. (Navigate to your Spending Account Dashboard, then choose How It All Works from the navigation.)

Here are some examples of eligible expenses:

• Your medical plan deductible.
• Your share of the cost for eligible dental care, including exams, X-rays, and cleanings.
• Your share of the cost for eligible vision care, including exams, eyeglasses, contact lenses, and laser eye surgery.
• Certain over-the-counter medicines and drugs that are prescribed by a doctor.
• Insulin, including over-the-counter insulin.
• Due to the COVID-19 pandemic, certain over-the-counter medicines and other products may be temporarily considered reimbursable, without a prescription. Read more.

Ineligible Expenses

You can preview a list of expenses that are generally not an eligible expense in the HCSA summary plan description (see plan documents section on this page) or by accessing your HCSA account online. (Navigate to your Spending Account Dashboard, then choose How It All Works from the navigation.) 

Some examples of ineligible HCSA expenses include:

• Cosmetic surgery and procedures, including teeth whitening
• Herbs, vitamins, and supplements used for general health
• Insurance premiums
• Family or marriage counseling
• Personal use items such as toothpaste, shaving cream, and makeup
• Prescription drugs imported from another country

As a reminder, ineligible expenses also include:

• Services that take place before or after your coverage period.
• Expenses that are reimbursed by another plan or program, including another health plan.