As 2027 Annual Enrollment approaches, I wanted to share some information that may be helpful as members evaluate their healthcare options and consider potential healthcare and prescription drug expenses.
Under the current plan design, many prescription drug costs may be subject to deductibles and coinsurance which can make out-of-pocket expenses less predictable. To help manage these costs, members may want to consider a Health Care Flexible Spending Account (FSA) or, if enrolled in an HSA-eligible medical plan, a Health Savings Account (HSA).
How FSAs and HSAs Can Help
Both FSAs and HSAs allow eligible healthcare and prescription expenses to be paid with pre-tax dollars, which may reduce taxable income.
An FSA can generally be used for eligible deductibles, copayments, coinsurance, and prescription drug expenses.
An HSA offers similar tax advantages, higher contribution limits, and allows unused funds to carry over from year to year.
Planning Ahead
As members prepare for enrollment, they may want to estimate anticipated healthcare expenses for the coming year including:
Prescription medications
Physician office visits
Ongoing treatments or chronic condition management
Deductibles and coinsurance
Other eligible medical expenses
For example, a member with a $1,000 deductible and approximately $480 in annual prescription costs may wish to set aside funds through an FSA or HSA to help cover those anticipated expenses.
Important FSA Reminder
Members should carefully estimate their expected healthcare expenses before making an FSA election. Under the AT&T Health Care FSA, unused balances generally cannot be carried over to the next Plan Year and may be forfeited if not used for eligible expenses incurred during the Plan Year. Claims incurred during the Plan Year must generally be submitted by March 31 of the following year.
Key Takeaway
The goal of this information is to encourage members to begin thinking about their expected healthcare and prescription drug expenses before making their 2027 Annual Enrollment elections. Understanding how deductibles, coinsurance, FSAs, and HSAs work together can help members make more informed benefit decisions.
For HSA and FSA related questions, employees can review the AT&T Flexible Spending Account Plan SPD and use the search feature on the AT&T Benefits website using terms such as HSA, Health Savings Account, Enhanced HSA, contributions, eligible expenses, and investment options.
I have attached two reference guides that may assist in answering member questions. Each guide includes frequently asked questions and the corresponding page numbers from the AT&T Flexible Spending Account Plan SPD (NIN 78-74836, October 2025) where the information can be found.
These resources are intended to provide a quick reference for common questions regarding HSAs, Health Care FSAs, Dependent Care FSAs, and reimbursement rules.
AT&T HSA Union Representative Quick Reference Guide: Click Here
ATT Dependent Care FSA Union Reference Guide: Click Here
