MetLife adds HSA, FSA and commuter account options
MetLife is adding tax advantaged savings accounts to its product lineup come 2021.
The insurance company’s new offerings will include the HSA, FSA, limited purpose FSA, dependent care FSA and commuter benefits. MetLife is known for offering voluntary benefits like life, legal, auto and home insurance, but the company decided it needed to ramp up its health offerings to attract more employers, company executives say.
“Being a leader in the group benefits space, we’re always looking for ways to stay competitive,” says Alan Hirschberg, vice president of supplemental health products at MetLife. “Employees are embracing savings accounts for the tax benefits, so these products are a natural fit for our voluntary benefits strategy.”
MetLife’s new HSA will be tied to its high deductible health plan — the second most utilized type of employer-sponsored health insurance, according to the Society for Human Resource Management. HSA holders with at least $2,000 in their account will be eligible to invest their funds through either a self-directed brokerage account or standard set mutual funds.
Todd Katz, executive vice president of group benefits at MetLife, says the HSA investment options were added to help employers, “provide their employees with even more tools to help them realize their financial goals.”
The new FSAs can be used with most health plans. The dependent care FSA specifically sets aside money to pay for child care and camps for children under the age of 12, while the limited purpose FSA is meant for healthcare spending on things like glasses and dental fillings. Only employees with HSAs can sign up for a limited purpose FSA, Hirschberg says.
MetLife will also provide a pre-tax commuter benefit account for employers. Employees using the account are able to access all MetLife savings account funds through a debit card provided by WEX Health, a benefits management company. Company executives say the partnership with WEX Health will help employers declutter their benefit offerings. MetLife’s new savings account offerings will be launched Jan. 1, 2021.
“Having health savings and spending accounts as a MetLife offering, and the ability to integrate these products with a range of benefits administration platforms, means that employers can offer a smoother and more seamless experience, eliminating some of the complexities of using multiple providers,” Katz says.