Lifestyle Spending Accounts have come a long way since their inception in the early 2000s. Initially, they just started as a flexible option for employers to create personalized employee benefit programs and have since evolved.
It’s 2023, and employees want more than basic medical and dental coverage. LSAs provide a great benefit to employees that support diverse cultures and work/life balance. According to a study by Alegeus, 54% of consumers say they would leave their current job for one that offers better benefits.
LSAs allow employers to set up spending accounts for employees to spend how they want within categories the employer controls, making it more flexible than traditional HSAs or FSAs, where funds must be used on qualified medical expenses. Some categories include but are not limited to professional development programs, home office equipment and utilities, childcare and eldercare services, and even leisure/hobbies.
Who is eligible to participate in the Lifestyle Account?
All full-time employees working 30 hours or more per week are eligible for the Lifestyle Account.
What does a Lifestyle Account cover?
This can vary by employer, but here are some examples:
- Exercise clothing
- Exercise shoes
- Gym memberships
- Exercise equipment
- Fitness trackers
- Nutritionist fees
- Massages/spa treatments
Note that expenses incurred by your dependent(s) are not covered.
The evolution of LSAs represents a significant step forward in empowering employees to take control of their overall health, not just medical. With greater flexibility, portability, and integration with technology, LSAs have transformed the employee experience. Today, many LSAs provide digital platforms and mobile apps that allow employees to easily track their expenses, access account information, and submit claims or receipts electronically. This integration of technology has made it more convenient for employees to manage their healthcare finances and make informed decisions. Medcom Benefit Solutions, like other providers, gives Lifestyle Plan participants a debit card to use for their expenses. Didn’t use all of your allotted funds? No worries! Any unused account funds will be returned to you at the end of the plan year.
To learn more about Medcom’s Lifestyle accounts, do not hesitate to contact us.