HSAs available to help workers manage healthcare expenses during
working years and retirement
SPRINGFIELD, Mass.–(BUSINESS WIRE)–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 MassMutual’s 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
“WEX Health is excited to make our industry-leading HSAs available to
more Americans through MassMutual’s 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 Group’s 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
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 MassMutual’s 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 user’s 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 person’s 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