Caring for your health and well-being is essential, and it goes beyond just visiting your doctor. Whether you enjoy working out at the gym to keep your body healthy or prefer taking a yoga class to clear your mind, these activities are often not covered by your health insurance. This is where a lifestyle spending account (LSA) can come in handy.
LSAs provide coverage beyond traditional medical appointments and prescriptions. They are employer-sponsored accounts that focus on improving your physical, mental, and financial health. While LSAs share similarities with flexible spending accounts (FSAs) and health savings accounts (HSAs), they offer unique benefits by covering expenses not typically included in other accounts.
Employers fund LSAs, with contributions varying from $500 to $2,000 annually on average. Eligible expenses are determined by the employer and may include categories such as health and well-being, nutrition, and fitness. Unlike other special reimbursement accounts, LSA funds are taxable, but using them can still result in lower out-of-pocket costs for you.
The benefits of a lifestyle spending account are numerous. LSAs offer flexibility, allowing you to choose how to use your funds based on your personal health needs. They are easy to understand and use, making it simple to take advantage of this employer benefit. Additionally, LSAs can complement your insurance coverage by reimbursing expenses that may not be covered by your health plan alone.
Eligible expenses with an LSA can include gym memberships, fitness classes, financial planning services, counseling, spiritual retreats, and more. These expenses focus on improving physical, financial, and emotional well-being, filling in the gaps left by traditional health insurance coverage.
When comparing LSAs to FSAs, there are key differences to consider. LSAs cover nonmedical activities that enhance overall well-being, while FSAs are limited to qualified medical expenses. LSAs are funded by employers and taxable, with no contribution limits, while FSAs are funded by individuals and have annual limits set by the IRS.
Submitting claims with your LSA is typically straightforward. You can usually submit claims online or through a mobile app, providing details and receipts for reimbursement.
In conclusion, a lifestyle spending account can be a valuable tool for enhancing your health and well-being. By covering a wide range of expenses that traditional insurance may not include, LSAs offer a flexible and convenient way to invest in your overall wellness. If your employer offers an LSA, be sure to take advantage of this benefit to support your physical, mental, and financial health.
