Care.com Introduces Spending Accounts to Help Employers Mitigate the Cost of Care for Employees

Rhea-AI Summary

Care.com, a leading online platform for family care, has unveiled a new Care Spending Account product aimed at helping employers financially support their employees' care expenses. This addition to their Care for Business segment allows employers to make flexible monthly or annual contributions towards employees' care costs, including childcare, senior care, and pet care. The development of this product aligns with findings from Care.com’s 2024 Future of Benefits Report, which indicated a high demand for cash subsidies for care among employees. CEO Brad Wilson emphasized the growing importance of care benefits in the workplace and the company's goal to provide holistic support to employers. The Care Spending Account will be powered by First Dollar, a tech firm specializing in health spending benefits.

Positive

• Introduction of Care Spending Account expands Care.com's product suite, providing more comprehensive support for employee care needs.
• Product aligns with Care.com's 2024 Future of Benefits Report, indicating a strong market demand for such benefits.
• Employers can customize care contributions, making the product flexible and adaptable to different needs.
• Partnership with First Dollar adds robust technology infrastructure to the Care Spending Account product.
• Positive feedback from HR leaders, indicating market acceptance and readiness for the new product.

Negative

• No specific financial data provided to assess immediate impact on Care.com's revenue or profitability.
• Potential costs associated with implementing and managing the new Care Spending Account product.

AUSTIN, Texas--(BUSINESS WIRE)-- Care.com, the world’s largest online platform for finding and managing family care, today announced a Care Spending Account product that gives employers a flexible solution to financially support their employees with the ongoing costs of care, whether for children, seniors, pets or themselves. Offered through Care for Business, the Company’s enterprise segment, the product joins an existing portfolio of workplace solutions which include premium Care.com memberships, subsidized backup care for children and adults, care specialists, discounts on everyday essentials and more.

The Care Spending Account will enable employers to make a monthly or annual lump sum contribution to each employee’s care expenses. Employers will have the flexibility to determine which categories of care are covered by the Care Spending Account funds.

The development of this new product reflects the growing recognition that working families cannot function without care and the growing reality that they are looking to their employers for help shouldering the costs. Care.com’s 2024 Future of Benefits Report released earlier this year underscored these trends among employees: cash subsidies for care were the second most wanted family care benefit overall and 30% ranked the benefit as their top choice among the family care benefits not currently offered to them but would be used if available.

In making the announcement, Brad Wilson, CEO of Care.com, said, “Conversations about the cost of care have moved from the living room to the conference room. Across industries employers are looking for ways to make care more accessible and affordable for their employees and they are looking for holistic solutions that allow them to support their full workforce. The introduction of the Care Spending Account product is a natural expansion of our suite of family care benefits, among the most comprehensive in the industry. Benefits carrier consolidation is the buzz phrase we are hearing from HR leaders, and we are thrilled to offer our clients an end-to-end solution.”

The Care Spending Account product will be powered by First Dollar, a technology company that provides flexible infrastructure for health spending benefits.

About Care.com and Care for Business:
Available in 21 countries, Care.com is the largest online platform for finding and managing family care, spanning in-home and in-center care solutions. Since 2007, families have relied on Care.com for an array of care for children, seniors, pets, and the home. Designed to meet the evolving needs of today’s families and caregivers, the Company also offers customized corporate benefits packages to support working families at more than 700 global clients, household tax and payroll services, and innovations for caregivers to find and book jobs. Care.com is an IAC company (NASDAQ: IAC).

Care for Business offers the most comprehensive suite of employer-sponsored family care benefits to global businesses, including many of the Fortune 500. Its solutions are designed to help solve today’s most disruptive caregiving challenges: finding care, affording care, and navigating the challenges of caring for loved ones.

About First Dollar:
First Dollar is a technology company that builds flexible infrastructure for health spending benefits. Innovative organizations—from TPAs to banks—use First Dollar’s suite of software tools and APIs to launch and manage lifestyle benefits, pre-tax accounts (FSAs, HRAs, HSAs), rewards programs, and supplemental benefits. First Dollar’s Benefit Suite includes the Health Wallet for members, the Health Wallet Manager for administrators, and the Health Wallet Platform for partners. First Dollar is based in Austin, Texas, with teammates throughout the United States.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240522514516/en/

For Care.com

Natasha Fellion

Manager, Public Relations

Natasha.Fellion@care.com

For First Dollar

Kayla Gross

VP, Marketing

kgross@firstdollar.com

Source: Care.com

FAQ

What is Care.com's new Care Spending Account product?

The Care Spending Account allows employers to make monthly or annual contributions to help employees with care expenses for children, seniors, pets, and themselves.

When was the Care Spending Account introduced?

Care.com announced the Care Spending Account on October 5, 2023.

How does the Care Spending Account benefit employers?

It provides a flexible solution for employers to support their employees financially with care costs, thus enhancing employee satisfaction and retention.

Who powers Care.com's new Care Spending Account product?

The Care Spending Account is powered by First Dollar, a technology company specializing in health spending benefits.

What did Care.com's 2024 Future of Benefits Report reveal?

The report highlighted that cash subsidies for care were highly desired by employees, with 30% ranking it as their top choice among family care benefits.