UnitedHealthcare has launched a new employer-funded benefit called the Lifestyle Spending Account, designed to support employees' personal health and wellness goals in a flexible and efficient manner.
The LSA is deeply integrated with UnitedHealthcare's digital store, the UHC Store. Eligible members can access the UHC Store via the UnitedHealth app or website to choose from over 30 health and lifestyle products and services, covering areas such as mindfulness, women's health, nutrition, fitness, sleep, chronic condition management, family planning, and weight management, with most items available at discounted prices.
Unlike traditional health accounts, the LSA is an employer-funded, after-tax account that can be used to purchase health and lifestyle products that are not eligible for reimbursement through a Flexible Spending Account or Health Savings Account. Thanks to the integration with the UHC Store, members can use their account funds directly at checkout, eliminating the need to submit claims for reimbursement after the fact.
The LSA is currently available to over 15 million UnitedHealth commercial members and is intended to provide employers with a means to meet employees' individual needs without making significant adjustments to their health plans.
Dan Kueter, CEO of UnitedHealth's commercial business, stated that people desire a more personalized healthcare experience and greater choice, while employers are seeking to modernize their benefits strategies. This innovation is part of the company's ongoing effort to improve the healthcare experience, aiming to expand consumer choice in a flexible and efficient way.
Surveys show that 88% of employees consider well-being to be as important as salary, and 78% expect employers to provide support. As Gen Z and millennials become the dominant force in the workforce, employers are facing pressure to adjust their benefits strategies. Industry forecasts predict that the proportion of employers offering an LSA or similar product will reach 76% within the next three years.