UnitedHealthcare rolls out wellness spending accounts for fitness, family planning
UnitedHealthcare is looking to provide employer plans with a new benefit, designed to cover the costs of personal health and wellness, so long as it’s one of the more than 30 products or services available through its associated webstore.
This Lifestyle Spending Account (LSA) feature works like Flexible Spending Accounts and Health Savings Accounts, except that it covers things like gym memberships, therapy sessions and family planning, many of which cannot be paid for from other benefit programs.
The payer group said it is currently partnering with “dozens of popular vendors” for the rollout of the feature. To see what’s available in your area or virtually, anyone with the LSA feature would need to log into the UHC Store to see where funds can be spent.
The insurer said over 15 million members of its commercial plans will have immediate access to the new post-tax account as a value-add.
“People want healthcare to feel personal with more choices to tailor their experience, while employers are seeking opportunities to modernize their strategies,” Dan Kueter, CEO for UnitedHealthcare’s commercial business, said in a statement. “This is a part of our sustained effort to improve the healthcare experience through flexible, cost-efficient innovations for employers that empower consumer choice.”
Motivated by young people
UnitedHealthcare added that the digital storefront was designed to be easy to use, modeled after a virtual shopping experience. It said the LSA is filling a market demand it sees from younger employees, who tend to be those seeking “holistic offerings that are integrated into their lifestyles,” and tend to be focused on their sleep, nutrition and physical appearance as they pertain to living an overall healthy life.
It cited survey data that showed 88% of employee plan members believe their personal well-being is as important as salary, with 78% adding that their employer should be expected to support the former.
Young people are also beginning to dominate the workforce. UnitedHealthcare said Millennials and Gen Z make up more than half of its commercial plan members, and that this cohort drives more than 40% of all spending on wellness nationwide.
While there are currently just over 30 options available for LSA spending, the company said it will be expanding what’s available through new wellness vendor partnerships as time goes on.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.