HCSAs at a glance

The type of spending account you’re eligible for depends on which Verizon health plan you choose:

  • HCSA: Contribute if you’re not enrolled in the High Deductible Plan (HDP).
  • Limited-purpose HCSA: Contribute only if you’re enrolled in the HDP.
 HCSALimited-purpose HCSA
2025 contribution limit$3,300$3,300
Eligible medical plansAll plans except HDPHDP
Examples of eligible expenses
  • Medical copays, coinsurance and deductibles
  • Prescription drugs
  • Dental expenses, including orthodontia
  • Vision expenses, such as eye exams and glasses, contact lenses and solution, prescription sunglasses, and Lasik procedures
  • Over-the-counter (OTC) medical products obtained without a prescription and menstrual products
  • Durable medical equipment, such as wheelchairs
  • Dental expenses, including orthodontia
  • Vision expenses, such as eye exams and glasses, contact lenses and solution, prescription sunglasses, and Lasik procedures
Can I also have an HSA?NoYes

How they work

Enroll through BenefitsConnection as a new V Teamer or during Annual Enrollment. Your election will carry over to the next year unless you make changes during Annual Enrollment or midyear following a qualifying life event.

Use the money in your HCSA to cover qualified health expenses.

Set aside up to $3,200. The IRS sets annual limits on spending account contributions and typically updates those limits after you elect your contribution during Annual Enrollment. The 2024 limit is $3,200. To contribute up to any new maximum the IRS may set for 2025, select the option to contribute the maximum amount during Annual Enrollment.

If you enroll in the HDP for 2025 and are currently enrolled in the HCSA, you will not be permitted to set aside money in the HCSA in 2025 (but you will be able to contribute to a limited-purpose HCSA in 2025). If you have a balance remaining in your 2024 HCSA, you will be able to incur expenses through March 15, 2025, and submit them for reimbursement through May 31, 2025—but you will not be eligible to contribute or receive Verizon contributions to your HSA until April 1, 2025. To fully fund your HSA in 2025, be sure to use your entire HCSA balance by the end of 2024.

Your annual contribution amount will be available on January 1, although your contributions will be deducted from your paycheck in equal increments throughout the year.

To estimate how much money to contribute to an HCSA, go to BenefitsConnection > Compare Your Plan Options > My Spending Account Calculators.

Budget carefully

You have until March 15 of the next year to incur expenses and until May 31 to submit claims for the prior year’s HCSA-eligible expenses. You’ll forfeit any unused balance after March 15.

Contacts

Related content
Medical
Health savings account (HSA)
Dependent care spending account
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Save on eligible health expenses when you set aside before-tax dollars in a health care spending account (HCSA) or a limited-purpose HCSA.