Voya Financial, Inc. (NYSE: VOYA), announced today its latest expansion of workplace solutions and services that it will offer to its Retirement and Employee Benefits clients to help both employers and their employees with their financial wellness needs — particularly during a time when employees are increasingly looking for health and wealth support through the workplace.
Effective Jan. 1, 2021, Voya is adding the following offerings to its suite of Health Savings and Spending Accounts:
- Health Reimbursement Arrangements (HRAs) — A Voya HRA is a tax-advantaged account that allows both employers and their employees to help save on the cost of health care. For employees, the HRA is funded entirely by the employer, and employees get reimbursed for eligible medical expenses. Since it’s a tax-advantaged account, employees typically don’t pay taxes on the money in the account or when they are reimbursed. For employers, contributions to HRAs are tax deductible; can possibly lower their benefit premiums; and provide a financial incentive to their employees to help control and manage their health-care spending, since the decision about contribution amounts and eligible medical expense reimbursement is made by the employer.
- COBRA administration — The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986 requires all businesses with 20 or more employees that provide employee benefits to offer extended coverage to all employees who are terminated or retire or to the beneficiaries of deceased employees. For employers, managing associated compliance requirements and keeping track of changing legislation makes COBRA administration a challenge — especially for companies with a stretched HR staff.
Voya’s new COBRA administration service will manage everything from enrollment, operating systems and processing payments to help ensure employers have a compliant COBRA program for qualifying beneficiaries. To help enhance the user experience, Voya is launching a new Employer Portal that offers a streamlined design that allows employers to more easily track and manage their COBRA program. Additionally, Voya plans to offer a new COBRA mobile app to make it easier for beneficiaries to view their benefit elections, view communications and set up recurring payments. The newly enhanced user experience for employers and the new COBRA mobile app will be available Jan. 1, 2021. “During these uncertain times, workplace benefits have never been more important for Americans,” said Rob Grubka, president of Employee Benefits, Voya Financial. “In the midst of a global pandemic, for example, Voya research indicates that nearly 8-in-10 Americans (78%) believe that significant layoffs are likely1 — making the continuation of their workplace benefits critical for those employees who could be impacted. Plus, both employers and employees continue to grapple with how to handle the projected 40% increase in health-care costs over the next eight years in the U.S.”2
“Voya’s new COBRA and HRA offerings can help address both of these concerns and are valuable solutions for employers — especially as their employees increasingly turn to them for help when it comes to managing their financial health and wellness needs,” added Grubka. “It’s the latest example of how Voya is focused on providing holistic solutions and services offered through the workplace to help support the needs of its more than 50,000 institutional clients and their employees.”
Voya’s Expanding Suite Of Health Savings And Spending Accounts
In January 2019, Voya launched its portfolio of Health Savings and Spending Account solutions, which included the following tax-advantaged offerings: a Health Savings Account (HSA) to be used in combination with high-deductible health plans; a Health Flexible Spending Account (Health FSA); a Limited Purpose FSA; a Dependent Care FSA; and a Commuter Benefit Account.
“Since we first introduced our suite of Health Savings and Spending Account offerings, Voya has experienced incredible interest from the market. For example, we’ve received more than three times the number of requests for proposals compared to this time last year,” explained Nate Black, vice president of Consumer Driven Health, Voya Employee Benefits. “When coupled with our high levels of service, technology and educational tools, the addition of our COBRA and HRA offerings aligns with Voya’s ongoing focus to provide employers with the flexibility to choose what best fits their benefits portfolios and the ability to the meet the needs of their employees.”