Insight Two
Lifestyle Spending and Medical Travel Accounts are gaining popularity, but there’s still room for greater adoption.
Lifestyle Spending and Medical Travel Accounts can enable organizations to flexibly meet a range of employee needs.
Offering these accounts can help companies strengthen their culture and diversity, equity and inclusion goals, help reduce employee stress, and improve wellness and productivity. However, there’s still room for greater adoption of these increasingly popular, post-tax benefits.
of organizations offer Lifestyle Spending Accounts, covering emotional, financial and physical wellness.
What expenses do employers' LSAs cover?
Lifestyle Spending Accounts offer organizations of all sizes a chance to offer their employees flexible, competitive, post-tax benefits while controlling costs and are an important benefit offering for companies of all sizes.
However, LSAs are more common among larger employers, and 76% of businesses with less than 100 employees do not offer these accounts. Emotional, financial, and physical wellness and professional development are some of the most popular categories for LSAs.
What are the top reasons for offering a Medical Travel Account?
To ensure that all employees have access to the same level of care, regardless of location
To create a more remote-friendly workplace
To recruit and retain talent
To align with our company values
Medical Travel Accounts enable employers to reimburse employees for expenses related to travel for medical reasons and help ensure that employees have the same access to care regardless of location and help create a remote-friendly workplace. However, MTAs are more common in larger companies and 78% of businesses with less than 100 employees do not offer one.
of organizations offer Medical Travel Accounts.
Ensuring equity of access to care among all employees is the main reason organizations offer them.
Action items for employers and brokers
For HR leaders
- Survey employees to determine what is important to them, such as fitness, professional development, or mental wellness, and consider adding a Lifestyle Spending Account to further support them.
- Consider adding an MTA to ensure equity of care and improve employee retention and attraction, especially if you have a remote or distributed workforce, or access to certain types of care or specialists are limited in your area.
For brokers
- Show clients different LSA plan designs to demonstrate how flexible these accounts can be.
- Present clients with LSA and MTA options that are easy-to-use and have great customer support for administrators and employees. .