A directed spend program is an employer-owned program where the employees are offered a spending amount with spending control.
Also Known As: Directed spend programs can also be called family building benefit, adoption benefit, surrogacy benefit, rewards program, lifestyle spending account.
Eligibility
It is not required to have health insurance coverage to participate in a directed spend program. Your employer must simply offer the program.
Contributions
Employees cannot contribute to a directed-spend program; only employers (or partner benefit providers) may contribute to a directed-spend program.
Limits
There are no annual contribution minimums or limits. Employer contributions generally range from $500 to $2,000. Even up to $3,500, depending on the type of program.
Eligible and Ineligible Expenses
Some examples of costs that directed spend programs can be designed to cover include the following:
Adoption expenses
Diapers expenses
Surrogacy expenses
Check your plan details for more information!
The employer determines what expenses get reimbursed. Refer to the program details for more information.