A traditional group plan is insurance: you pay premiums for set coverage, whether or not it’s used. An HSA reimburses eligible health and dental costs up to the amount you set, and you pay only for the claims that are made. A lifestyle spending account covers lifestyle and wellness costs in the categories you choose, and unlike an HSA, its reimbursements are taxable to the employee. Many employers offer an LSA alongside an HSA or a group plan, rather than on its own.
How is an HSA different from traditional group benefits or a lifestyle spending account?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
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More about health spending accounts
A tax-effective way for the business to pay for health and dental costs, for owners and employees.
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