Massachusetts Mutual Life Insurance Co. (MassMutual) is expanding its wealth accumulation and protection benefits at the workplace by making Health Savings Accounts (HSAs) available on its MapMyFinances financial wellness tool for workers.
The HSAs, powered by WEX Health Inc., enable workers who are covered by high-deductible healthcare plans to put aside money on a tax-favored basis for eligible healthcare expenses during their working years as well as retirement. Contributions to the account may be made by the employee, the employer or both and the account is owned by the employee.
One of MassMutuals most important goals is to provide financial wellness to all Americans, said Tina Wilson, Head of Investment Solutions Innovation at MassMutual. The introduction of HSAs to our MapMyFinances benefits tool enables us to extend an important financial management and planning capability to potentially millions of American workers.
WEX Health is excited to make our industry-leading HSAs available to more Americans through MassMutuals workplace benefits platform, said Jeff Young, President of WEX Health Inc. HSAs are becoming an increasingly popular financial tool for workers and retirees to manage healthcare expenses, which continue to rise unabated.
Usage of HSAs is projected to outpace other financial accounts for healthcare such as Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs) by 2021, according to the Aite Groups most recent Health Benefit Accounts Market Forecast1. Unlike HRAs and FSAs, contributions to an HSA are held by a qualified financial institution. Also unlike other accounts, HSAs are owned by the individual employee, not the employer.
While HRAs and FSAs require eligible expenses to be validated by a third party, the Internal Revenue Service does not require such validation for HSAs. However, it is required that consumers keep all of their medical receipts for eligible expenses in the event of a tax audit.
Contributions to HSAs carry over year-to-year, can be invested and earn interest for greater savings potential, and can be used tax free for eligible medical expenses in retirement. However, no additional contributions can be made once the employee who owns the account enrolls in Medicare.
MapMyFinances was introduced by MassMutual earlier this year as part of its efforts to help all Americans achieve financial wellness. The workplace financial and benefits planning tool helps workers assess their personal financial needs to help make the best choices regarding their retirement and protection benefits.
The MapMyFinances tool is available automatically at no cost through employers that sponsor MassMutuals 401(k) or other defined contribution retirement plans, voluntary insurance benefits or both. The tool provides users with a personalized financial wellness score to help them assess their overall financial situation and makes recommendations to help workers prioritize their benefits choices based on their family situation and budget.
Based on the data provided, the tool analyzes the users personal financial needs and sets priorities accordingly. While healthcare coverage is typically a top priority for most people, other financial needs such as retirement savings; life, disability, accident and critical insurance coverage; college savings; debt reduction and others vary depending upon the persons family situation and budget.
MassMutual is announcing the availability of additional financial benefits and services through MapMyFinances such as HSAs to help workers solve other pressing financial needs such as debt management, medical and emergency savings, tuition reimbursement and budgeting.
Powered by the belief that complex payment systems can be made simple, WEX (NYSE: WEX) is a leading financial technology service provider across a wide spectrum of sectors, including fleet, travel and healthcare. WEX operates in more than 10 countries and in more than 20 currencies through more than 4,800 associates around the world. WEX fleet cards offer 11.5 million vehicles exceptional payment security and control; purchase volume in its travel and corporate solutions grew to $34.7 billion in 2018; and the WEX Health financial technology platform helps 343,000 employers and more than 28 million consumers better manage healthcare expenses. For more information, visit www.wexinc.com.
MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyowners. MassMutual offers a wide range of financial products and services, including life insurance, disability income insurance, long term care insurance, annuities, retirement plans and other employee benefits. For more information, visit www.massmutual.com.
1Health Benefit Accounts Market Forecast: HSAs Leading the Way, Aite, June 21, 2018, https://aitegroup.com/report/health-benefit-accounts-market-forecast-hsas-leading-way