Schedule A Demo
by healthbreak Newsroom

Rethinking Employee Wellness: The Rise of Lifestyle Spending Accounts

Written by Valerie Nagoshiner, MBA, President of Healthbreak

Most wellness programs ask employees to fit into a plan.
Lifestyle Spending Accounts (LSAs) flip that model—and let wellness fit the employee.

At Healthbreak, we’ve seen a clear shift in how employers are thinking about well-being. Mid-sized companies especially are re-evaluating wellness programs that look good on paper but fail to gain traction. Too often, the problem isn’t a lack of effort, it’s a lack of relevance.

We hear it all the time:

“Our benefits are generous, but no one uses them.”

The truth is: employees define wellness in personal, varied ways. When their only options are generic or narrowly focused, it’s no surprise engagement falls short.

What Are LSAs and Why They’re Gaining Momentum

Lifestyle Spending Accounts are employer-funded, taxable accounts that give employees the flexibility to spend on services or activities that support their own health and well-being. Unlike HSAs or FSAs, LSAs are not limited by IRS restrictions and can be tailored to each organization’s values and budget.

Employees might choose to use LSAs for:

  • Fitness and movement (e.g., classes, equipment)

  • Mental well-being (e.g., meditation apps, therapy)

  • Financial health (e.g., coaching, planning tools)

  • Hobbies and creative outlets that reduce stress

Across industries, LSAs are gaining popularity because they offer a practical response to a complex workforce: multigenerational, diverse, and increasingly aware of the need for holistic support.

Studies show:

  • LSAs average around  80% employee participation, far outpacing traditional wellness stipends

  • A growing majority of large employers now include LSAs as part of their total well-being offering

Employees feel seen when their benefits reflect how they actually live and manage stress. This results in higher engagement, which then leads to better morale, retention, and performance.

What HR Leaders Can Do Right Now

If you’re exploring new ways to meet your employees where they are, consider these steps:

  1. Audit what’s already in place.

    What’s being used, and what’s sitting idle? What feedback have you heard about what’s missing?

  2. Ask deeper questions.

    How do your employees define “well-being”? Are your current benefits structured to reflect a wide range of needs and life stages?

  3. Think flexibly.

    LSAs don’t have to be expensive or complicated. Even a small monthly stipend can signal that you trust and support your people on their terms.

  4. Plan with intention.

    If you’re not sure how to structure an LSA or how it fits into your broader wellness strategy, consider engaging a wellness advisor or partner who can help guide the design even if you don’t plan to work with them long term.

Final Thought

Well-being doesn’t mean the same thing to everyone and your benefits strategy shouldn’t assume it does.

At Healthbreak, we believe personalization, flexibility, and trust are the cornerstones of effective employee wellness. Whether you’re rethinking your existing approach or considering something new like LSAs, our team is always open to sharing ideas, frameworks, and lessons we’ve learned along the way.

If you’re starting this conversation internally, we’re happy to be a thought partner.

—
Valerie Nagoshiner, MBA

President, Healthbreak

📩 Connect with us: info@healthbreakinc.com
🌐 healthbreakinc.com