9 best Lifestyle Spending Account providers in 2025 [complete guide]

Smart companies recognize a crucial reality: benefits that treat employees like individuals drive stronger engagement and retention. Yet most organizations still cling to rigid, one-size-fits-all perks that miss the mark on personal impact.

While HR leaders understand the need for flexibility, many get stuck with clunky platforms and restrictive programs that create more frustration than value. The result? Underutilized benefits that fail to attract or retain top talent.

However, delivering personalized benefits doesn't require a massive overhaul.

In 2025, leading LSA providers offer streamlined solutions that put choice back in employees' hands — from wellness to professional development to family support. We're breaking down which platforms actually deliver on their promises. Here are some third-party administrators that can actually make a real difference in your employees' lives.

1. Forma - Best overall LSA provider
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Forma is a leading Lifestyle Spending Account provider that helps businesses offer flexible and customizable benefits at scale. With our powerful benefits software, companies can consolidate perks and spending accounts into a single, easy-to-use platform that enhances employee satisfaction while reducing administrative complexity.

Employees benefit from the ability to spend their allowances on the products and services that matter most to them, creating a more personalized and engaging benefits experience. At the same time, HR teams gain access to a streamlined web dashboard that simplifies benefits management, reduces overhead costs, and saves significant time.

Forma seamlessly integrates into existing tech stacks with a guided onboarding process and dedicated customer support, allowing businesses to deploy LSAs within weeks. By offering various customizable spending accounts, including Lifestyle Spending Accounts (LSAs), flexible spending accounts (FSAs), health savings accounts (HSAs), and healthcare reimbursement arrangements (HRAs), Forma helps companies attract and retain top talent while providing a modern and scalable benefits solution.

Why businesses choose Forma for Lifestyle Spending Accounts

Forma offers a comprehensive Lifestyle Spending Account solution that helps companies optimize their benefits programs while keeping costs under control. Here’s why Forma is one of the top third-party administrators in the LSA industry.

Cost-efficiency and improved utilization rates

Managing employee benefits can be expensive, but Forma helps businesses maximize cost efficiency while increasing benefit utilization. Traditional benefits programs often suffer from low engagement and wasted budget due to rigid structures that fail to meet employees' diverse needs. Forma solves this by offering customizable spending accounts that allow employees to allocate funds toward the benefits they actually use — ensuring every dollar is effectively spent.

Organizations using Forma have reported significant cost savings, such as $500,000 in just six months, by replacing outdated expense management systems. Additionally, Forma’s LSAs have achieved a 97% participation rate, proving that employees are more likely to engage when given flexible options. By allowing businesses to tailor benefits to employee preferences, Forma not only reduces wasted spending but also improves workforce satisfaction and retention.

Simplified administration

Managing multiple benefits programs across a diverse workforce can be a complex, time-consuming process for HR teams. Forma eliminates administrative burdens by centralizing all employee benefits within a single, easy-to-use platform. Companies no longer need to juggle multiple vendors, track reimbursement requests manually, or handle complex tax compliance issues — Forma automates and streamlines these tasks.

One of the biggest challenges businesses face is handling tax compliance for various benefits. Forma takes care of all tax classification, reporting, and regional compliance requirements, ensuring that businesses remain fully compliant without additional effort from HR teams. Whether it’s pre-tax or post-tax benefits, employer contributions, or country-specific tax regulations, Forma manages it all—eliminating risks and reducing administrative complexity.

Another major pain point for businesses is effectively communicating benefits to employees. Many companies struggle with low utilization rates simply because employees don’t fully understand their benefits. Forma solves this by handling all communication, providing employees with clear, tailored information about their benefits, how to use them, and what options are available. Companies don’t have to worry about educating employees or answering constant questions—Forma ensures that employees are well-informed and engaged.

By choosing Forma, companies increase efficiency, reduce administrative costs, and enhance the overall employee experience—without adding complexity.

Global reach

For companies operating across multiple countries, managing benefits at a global scale presents unique challenges, including compliance with local regulations, currency conversion, and regional benefit preferences. Forma simplifies global benefits management by providing a fully customizable and compliant solution that supports 111 countries worldwide.

Unlike traditional benefits providers that require separate programs for different regions, Forma unifies benefits administration under a single platform. This allows businesses to manage international benefits with ease while accommodating country-specific tax laws and employee preferences. 

Companies working with Forma have successfully implemented seamless global benefits programs that reflect regional nuances, eliminating the inefficiencies of managing multiple local vendors.

Multiple ways to claim benefits

Traditional benefits programs often create friction in the reimbursement process, leading to lower employee participation. Forma addresses this by offering three seamless ways for employees to access and utilize their benefits:

• Forma Visa Card: A preloaded benefits card that employees can use for direct purchases.
• Reimbursement Process: A quick and easy claims system that ensures fast reimbursements.
• Forma Store: A curated marketplace where employees can purchase discounted wellness, fitness, and professional development services.

By offering multiple claim options, Forma eliminates common barriers such as complex approval processes, slow reimbursements, and limited vendor networks. This flexibility ensures higher benefit utilization rates, improving overall employee satisfaction. 

Enterprise-grade security

Handling sensitive employee data requires robust security measures to ensure compliance and protect against cyber threats. Forma prioritizes data protection with enterprise-grade security, making it a trusted benefits platform for some of the world’s most security-conscious companies.

Forma is SOC 2 Type 2 and GDPR compliant, ensuring that employee data is managed with the highest levels of security and privacy protection. The platform also adheres to WCAG accessibility standards, ensuring inclusivity for all employees. These security measures are regularly audited and tested, providing businesses with confidence that their data remains secure and compliant with industry regulations.

Beyond compliance, Forma’s advanced fraud detection and encrypted payment processing safeguard transactions, reducing the risk of misuse or unauthorized access. 

2. Wellable

Wellable provides corporate wellness solutions designed to support employee health and well-being through a mix of digital and in-person offerings. Their platform includes a wellness hub with fitness challenges, mental health resources, and educational content aimed at promoting holistic well-being. They offer on-demand health classes, coaching services, and an integrated rewards wallet to incentivize participation. 

Wellable also provides Lifestyle Spending Accounts (LSAs), allowing employees to use funds for health and wellness-related expenses. The company emphasizes customization and flexibility, enabling organizations to tailor wellness programs to their specific needs. 

Features

• Customizable wellness programs: Employers can design wellness initiatives that align with employee needs, including fitness, nutrition, and mental health support.
• LSA integration: Wellable supports Lifestyle Spending Accounts, enabling employees to use their benefits on activities and services that improve their well-being.
• Gamification and incentives: Employees earn rewards through engagement in wellness challenges and participation in company programs.

Cons

• Some users experience difficulties with data syncing between fitness devices and the app, resulting in lost points and incomplete tracking.
• The platform primarily rewards step-based activities, making it less inclusive for those who engage in non-traditional fitness activities like strength training, yoga, or high-intensity workouts.
• Competitions often favor high scorers early on, leading to low engagement over time since winners become predictable.
• Retrieving past challenge data or moving users between programs can be tedious. Additionally, integrating nutrition-tracking apps requires additional steps, limiting seamless tracking for users focused on dietary wellness.

3. Benepass

Benepass is a flexible benefits platform designed to help companies offer personalized compensation options to employees. It provides LSAs, HRAs, FSAs, and commuter benefits, allowing employees to allocate funds based on their needs. Benepass focuses on scalability and engagement, offering a Visa-powered payment system for transactions. The platform supports global benefits administration and aims to simplify HR management by consolidating multiple benefits into one system. 

Features

• Flexible spending options: Employers can set up LSAs, wellness stipends, and commuter benefits with customizable categories.
• Prepaid card and digital wallet: Employees can use Benepass’ Visa card to make purchases directly from their benefits balance.
• Real-time tracking and analytics: HR teams gain insights into employee benefits usage through an intuitive dashboard.

Cons

• Users must email customer support for account changes, such as adjusting HSA contributions, rather than managing them within the app.
• The platform lacks detailed reporting on spending habits, making it harder for users to track and optimize benefit usage.
• Finding businesses that accept Benepass can be challenging, as the platform does not provide a clear vendor directory.
• Rejected reimbursements do not always include a clear explanation, and there is no accessible appeals process.

4. Optum

Optum is a health services and innovation company that provides care delivery, health management, and financial services. It offers HSA and FSA management, an online pharmacy with home delivery, and various wellness programs to support overall health. Optum also provides patient portals for billing, test results, and appointment scheduling, making healthcare more accessible. 

With operations in multiple countries, Optum focuses on integrated care solutions to improve health outcomes and reduce costs.

Features

• Health-focused benefits: Provides LSAs tailored for fitness, mental health, and personal well-being.
• Integration with healthcare services: Employees can use benefits alongside Optum’s healthcare network.
• Regulatory compliance: Designed to meet industry regulations, making it ideal for enterprises with strict compliance needs.

Cons

• Limited flexibility in spending categories compared to more customizable LSA providers.
• The platform’s interface can feel outdated and less intuitive than newer competitors.

5. Fringe

Fringe is a lifestyle benefits platform that helps businesses offer customizable perks, rewards, and stipends to employees. The platform consolidates various point solutions into one system, allowing employers to provide flexible benefits such as childcare, wellness services, food delivery, and travel perks. 

Fringe emphasizes employee choice, enabling users to select benefits that fit their lifestyles. It also supports global teams and integrates with remote and hybrid work models. 

Features

• Marketplace model: Employees can choose from a catalog of vendors, including wellness, entertainment, and personal development services.
• Fully customizable LSAs: Employers can set up benefits that align with company culture and employee preferences.
• Automated reimbursements: The platform streamlines the claims process for both employers and employees.

Cons

• The marketplace lacks variety, and many users feel that the available vendors do not cater to their preferences.
• Users cannot convert points into Visa or Amex gift cards, restricting them to specific vendors.
• Small bonus points are difficult to redeem due to high minimums on most rewards, leaving points unused.
• Many options cater primarily to families, limiting choices for employees with different lifestyles.

6. WEX

WEX is a global commerce platform that simplifies complex operational tasks for businesses across various industries. It offers solutions for managing employee benefits, fleet operations, and business payments. WEX’s comprehensive approach includes products like fuel cards, fleet management tools, and benefits administration, aimed at improving efficiency and cost savings. 

By streamlining processes and offering insights, WEX helps businesses reduce operational complexities, enabling better decision-making and allowing companies to focus on growth. Their platform also supports global scalability, making it suitable for businesses of all sizes.

Features

• Comprehensive benefits suite: Supports LSAs alongside other employer-sponsored accounts.
• Prepaid card and digital claims submission: Employees can use their benefits instantly.
• Strong compliance and reporting tools: Ideal for enterprises needing detailed tracking and security.

Cons

• WEX provides detailed reports for HSAs, but it lacks clarity and transparency for dependent care and LSAs, leaving some benefits under-reported.
• Even recurring claims are occasionally rejected, requiring additional work from users to secure reimbursements.
• WEX often denies valid claims, particularly by requesting unnecessary additional documentation, frustrating users with redundant processes.
• Some claims, like medical expenses, are rejected without clear justification, forcing users to jump through bureaucratic hoops to access their funds.
• WEX’s complaint process is cumbersome, lacking modern technological support, and requiring manual actions like mailing checks instead of accepting more convenient payment methods

7. Joon 

Joon offers a flexible benefits platform designed to help companies enhance employee engagement by providing personalized perks. With a focus on wellness, lifestyle, and development benefits, Joon enables businesses to tailor rewards packages that meet the diverse needs of their workforce. 

Through a user-friendly interface, employees can easily access and manage their benefits, promoting well-being and job satisfaction. Joon aims to simplify the process of offering valuable perks, making it easier for businesses to improve retention, productivity, and overall employee happiness.

Features

• Instant payments: Employees can use Joon’s payment system to make purchases without filing claims.
• Personalized benefits selection: Employers can set up spending categories tailored to employee needs.
• Mobile-friendly experience: Joon offers a seamless user interface for on-the-go access.

Cons

• The broad definitions of eligible categories can make it difficult for administrators to have clear control over reimbursements.
• Limited flexibility in how employees can use their wellness budgets may restrict their ability to tailor benefits to their needs.
• Integrating new payment methods can be confusing for some users, though Joon’s support team is quick in resolving issues.
• The lack of an end-date feature for departing employees can complicate benefits management.
• Reimbursement delays are a common frustration, with payments sometimes taking longer than expected to be processed.

8. Ameriflex

Ameriflex offers a comprehensive suite of benefit administration solutions, specializing in FSAs, HSAs, and other tax-advantaged benefit plans. Their platform simplifies the management of employee benefits, offering easy claims processing, a user-friendly interface, and robust customer support. Ameriflex aims to streamline benefit administration for employers while maximizing savings for employees. 

With a focus on compliance and efficiency, Ameriflex supports both small businesses and large enterprises in providing their workforce with valuable benefits, enhancing overall employee satisfaction and engagement.

Features

• Multi-account support: Companies can manage LSAs, FSAs, and HSAs in one place.
• Compliance expertise: Ensures adherence to IRS and industry regulations.
• Employee debit card: Simplifies benefit spending at approved merchants.

Cons

• Customers report receiving conflicting and inaccurate information from Ameriflex representatives, causing confusion and frustration.
• Multiple users have experienced denied claims despite following procedures and making timely payments, leading to dissatisfaction.
• Excessive processing fees, such as $20 per transaction, are charged for simple payments, even when issues are caused by the company itself.
• Difficulty reaching customer service, long wait times, and unhelpful responses leave users feeling unsupported and unheard.
• Customers report significant delays in receiving important enrollment and coverage information, hindering access to services and creating billing confusion.

9. Holisticly

Holisticly is an employee wellness platform designed to simplify the administration of corporate wellness programs. The platform offers employees a wide range of curated wellness options, including in-person gyms, on-demand fitness, meditation apps, and financial wellness tools. Holisticly integrates seamlessly with existing HRIS platforms, streamlining eligibility tracking and employee updates. 

Companies only pay for the wellness benefits employees actually use, making it a cost-efficient solution. Additionally, Holisticly handles administrative work, saving HR teams up to 8 hours per week. 

Features

• Wellness-oriented benefits: Employees can use funds for fitness, meditation, mental health, and personal development.
• Employer-configurable spending categories: Businesses can customize what expenses are eligible.
• Integrated marketplace: Employees access vendors directly through Holisticly’s platform.

Cons

• Limited availability for employees outside the US, making it less suitable for global teams.
• Regional restrictions on wellness options may limit access for employees based in certain areas within the US.
• Unused monthly budget does not roll over, which could be more beneficial if it accumulated over time.
• Some employees might feel that the platform’s wellness options are not as diverse or accessible in specific regions.

How to choose the best LSA provider for your organization

Selecting the best Lifestyle Spending Account (LSA) provider for your organization requires careful consideration of several key factors to ensure it aligns with your company’s goals and enhances employee satisfaction. Here are the most important criteria to evaluate when choosing an LSA provider.

• Flexibility: A great LSA provider should offer customizable spending categories that cater to the diverse needs of employees. Whether employees want to use their funds for wellness, fitness, personal development, childcare, or travel, the provider should allow businesses to tailor LSAs to fit their workforce’s unique preferences.
• User experience and accessibility: A seamless, intuitive platform ensures that employees can easily access and use their benefits without friction. The provider should offer a modern user interface, a well-designed mobile app, and simple reimbursement or direct payment options to enhance the employee experience. A poor user experience can result in low engagement and underutilization of benefits.
• Global availability: For companies with international teams, choosing a provider that supports employees across multiple countries is essential. The best LSA providers offer global solutions that allow employees to use their benefits regardless of location, ensuring inclusivity and fairness.
• Payment and reimbursement options: An effective LSA provider should support multiple payment methods, including direct payments via a dedicated benefits card, digital wallet integration, and a seamless reimbursement process. Employees should be able to use their benefits easily at the point of purchase without unnecessary delays.
• Administrative efficiency: Managing LSAs should be simple for HR teams. The best providers automate key processes such as enrollment, claims management, and reporting. A centralized dashboard with real-time analytics helps HR teams track budget utilization and adjust benefits programs as needed.
• Customer support and compliance: Reliable customer support ensures that both employees and HR teams receive timely assistance. The provider should offer 24/7 support through multiple channels, including chat, email, and phone. Additionally, compliance with regulatory standards such as SOC 2 and GDPR is crucial for businesses operating in highly regulated industries.

Getting started with Forma

After analyzing today's top LSA providers, the verdict is clear: If you want a platform that delivers real impact without complexity, Forma stands alone. While the LSA market has grown increasingly crowded, we've maintained our focus on what truly matters — giving employees the flexibility they want while making administration effortless for HR teams.

We've built more than just comprehensive benefits and enterprise-grade security. We've created an experience that understands every employee is different. Whether your team is focused on mental health support, professional growth, or family care, our platform makes it simple to invest in what matters most to them.

For companies ready to move beyond rigid benefits packages, our solution transforms the LSA from a standard perk into a strategic advantage that measurably improves engagement and retention.

The bottom line? We've built the LSA platform that works as hard as your team does —  <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo today</span> to learn more about how we can help.

Best Lifestyle Spending Account providers: Frequently asked questions 

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account (LSA) is a flexible benefits program that allows employers to provide employees with a set amount of funds each year to spend on a variety of wellness, lifestyle, and personal development expenses. Unlike traditional benefits, LSAs offer a broad range of categories such as fitness, wellness, professional development, and even travel. 

Employees typically have the freedom to choose how to spend these funds within predefined guidelines, offering greater choice and customization compared to more rigid benefits programs. LSAs are designed to enhance employee well-being and satisfaction.

How do LSAs differ from traditional employee benefits?

LSAs differ from traditional employee benefits in that they offer greater flexibility and customization. While traditional benefits like health insurance, retirement savings, and paid leave are essential but often rigid, LSAs provide employees with a set budget to spend on a wide array of personal, lifestyle, and wellness-related needs. 

These can range from fitness memberships and mental health support to home office upgrades and learning opportunities. Traditional benefits are often employer-mandated, whereas LSAs empower employees to choose what aligns best with their individual preferences, fostering higher engagement and satisfaction.

Are LSA funds taxable for employees?

In general, LSA funds are not taxable for employees, as long as the expenses fall within the eligible categories defined by the employer and meet specific IRS guidelines. If the funds are used for personal or non-eligible expenses, they may be subject to taxation. However, the tax treatment can vary based on the country or region, as well as the structure of the LSA program. 

To ensure compliance, employers typically work with third-party administrators to manage and track expenses, ensuring that all claims align with tax regulations and prevent unintended tax liabilities for employees.

*This document is for informational purposes. Forma is not engaged in the practice of law. Nothing contained herein is intended as tax or legal advice nor to replace tax or legal advice from counsel. If you need tax or legal advice, please consult with counsel or a certified tax professional.

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