UnitedHealthcare Launches New Spending Account Benefit, Putting More Choice in the Hands of Consumers

The new Lifestyle Spending Account (LSA) is integrated with UHC Store where eligible members can shop for health, wellness and lifestyle offerings, most at a discount

LSA offers employers a flexible, cost-efficient way to help employees customize their experiences with the offerings they value most

--(BUSINESS WIRE)--UnitedHealthcare has introduced a Lifestyle Spending Account (LSA), an employer-sponsored benefit that gives companies a flexible way to help fund and support their employees’ individual health and well-being goals. When offered by an employer, the LSA is designed to help empower people to personalize their experience and shop for products and services to complement their other employer-sponsored benefits at any time.

UnitedHealthcare has integrated its LSA with UHC Store, a consumer-friendly digital shop available within the UnitedHealthcare® app and myuhc.com®.

An LSA is an employer-sponsored, post-tax benefit that people can use to make purchases in UHC Store. Offerings include eligible health, wellness and lifestyle products not generally considered qualified expenses for other accounts like Flexible Spending Accounts and Health Savings Accounts.

Because UnitedHealthcare’s LSA is integrated with a member-exclusive digital shop, people don’t have to wait to be reimbursed since the transaction is handled at the point of purchase within the individual’s UHC Store experience.

Through this innovative model, people can use one digital platform to browse, shop and purchase offerings, most of them at a discount, at any time they see fit.

Consumers, especially younger employees, are driving a shift in employer benefit strategies with increasing demand for holistic offerings that are integrated into their lifestyles and meet a wider range of personal needs — from familiar wellness offerings for fitness and smoking cessation to a broader range of offerings for sleep, mindfulness, nutrition and appearance.

UHC Store and the integrated LSA offer a way for employers to fund categories of wellness and lifestyle offerings their employees value and increasingly expect, expanding financial support beyond what traditional health accounts and coverage offer.

“People want healthcare to feel personal with more choices to tailor their experience, while employers are seeking opportunities to modernize their strategies,” said Dan Kueter, CEO for UnitedHealthcare’s commercial business. “This is a part of our sustained effort to improve the healthcare experience through flexible, cost-efficient innovations for employers that empower consumer choice.”

The LSA is available to more than 15 million UnitedHealthcare commercial members. More than 30 offerings are currently available in UHC Store from dozens of popular vendors meeting a wide variety of lifestyle, health and wellness needs, including products for mindfulness; women’s health; nutrition; fitness; sleep; chronic conditions; family planning; weight management; and more.

UnitedHealthcare’s consumer-oriented approach to digital offerings — like UHC Store — brings familiar shopping experiences into the healthcare experience.

Modernizing employer health and wellness offerings

Eighty-eight percent of employees believe well-being is just as important as salary, and 78% expect their employers to support it. Meanwhile, workforce demographics are evolving. Gen Z and millennials represent more than half of UnitedHealthcare’s commercial membership and 54% of working age individuals overall, and drive more than 40% of total wellness spend nationwide.

LSAs that enable more consumer choice are increasingly popular, cost-efficient options for employers to modernize how they invest in employee health and well-being without the cost of a major health plan redesign. Within the next three years, the number of employers offering an LSA or a similar product is expected to reach 76%.

By choosing to fund the LSA, self-insured employers can minimize the number of vendor relationships, reduce administrative burden and meet the individual needs of employees instead of offering a one-size-fits-all approach that may not be relevant for every person.

UHC Store continues to evolve to include more vendors and offerings and to accommodate various employer-contribution models and consumer payment structures.

Healthcare that works better for people

While this is the most recent initiative from UnitedHealthcare to create a more consumer-friendly experience for people, the company is working broadly to address challenges in healthcare by:

• Reducing pediatric prior authorization requirements by nearly two-thirds
• Supporting rural hospitals with fewer administrative requirements
• Enhancing coverage for certain cancer detection services
• Expanding doula support for maternity care
• Launching Avery, a new AI assistant designed to help enable simpler navigation for members

Learn more about UnitedHealthcare’s commitment to make healthcare work better for everyone.

About UnitedHealthcare

UnitedHealthcare is dedicated to helping people live healthier lives and making the health system work better for everyone by simplifying the healthcare experience, meeting consumer health and wellness needs, and sustaining trusted relationships with care providers. The company offers the full spectrum of health benefit programs for individuals, employers, and Medicare and Medicaid beneficiaries, and contracts directly with physicians, care professionals, hospitals and other care facilities. UnitedHealthcare is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified healthcare company. For more information, visit UnitedHealthcare at www.uhc.com or follow UnitedHealthcare on LinkedIn.

UHC Store provides a member-direct purchase of health and wellness offerings. UHC Store is not a product, program nor service, is not insurance, and is not a substitute for health plan benefits nor professional medical advice, diagnosis, or treatment. UnitedHealthcare does not endorse nor guarantee offerings available through UHC Store. UnitedHealthcare is not responsible or liable for services, or advice given by a UHC Store participant of these offerings. Individuals are responsible for understanding potential risks associated with using these offerings. Purchasing any offerings may have tax implications. Health Savings Account (HSA) use and eligibility may be impacted. Individuals should consult with a tax specialist to determine whether they have any tax obligations from purchasing offerings from the UHC Store. Components subject to change. UHC Store is not available in all states or for all members. Amounts paid under a Lifestyle Spending Account (LSA) may be subject to federal, state, and local taxes. Employers should consult with a tax specialist to determine whether they have any tax obligations from members’ use of an LSA to purchase offerings from the UHC Store. LSA offerings and options are subject to change.   Employee benefits including group health plan benefits may be taxable benefits unless they fit into specific exception categories. Please consult with your tax specialist to determine taxability of these offerings.   Administrative services provided by United HealthCare Services, Inc. or their affiliates.