HSA/FSA
Key HSA & FSA Trends for Shopify Store Growth in 2025
Tap into a $150 billion market by accepting HSA and FSA payments.
September 30, 2024
Sam O'Keefe
Co-founder & CEO of Flex
Overview
Overview
Overview
🚀 Fast Facts: Why Should You Consider Accepting HSA/FSA as a Shopify Store?
17% of sales are made via HSA/FSA payments among Flex partners.
AOV is 20% higher for HSA/FSA orders compared to standard orders.
More repeat customers: 92% of surveyed customers said they'll return because HSA/FSA is accepted.
What if you could unlock a $150B market for your Shopify health or wellness business?
Better yet, what if this market was specifically designed to help consumers make health and wellness-related purchases?
Not to Flex 💪, but it’s surprisingly easy: By accepting Health Savings Account (HSA) and Flexible Spending Account (FSA) payments you can support your customers on their health journey, help them save money, and grow your AOV too.
Read on to learn about these health savings accounts, why they are becoming more popular, and how they are already boosting sales for D2C healthcare-related products and services.
First off, What Are Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)?
HSAs and FSAs are tax-advantaged financial accounts set up exclusively for health-related expenses. They are not health insurance, but rather complementary savings accounts that let consumers put money away for medical fees while also reducing their taxable income.
The idea behind these plans is to give consumers more control over their out-of-pocket healthcare spending.
This is because they can put money towards items that might not typically be covered by health insurance — think fitness and sleep trackers, at-home genetic or metabolic tests, smart baby monitors, and a whole range of other consumer-focused products. The funds can also be put towards common medical expenses such as elective surgeries, prescriptions, and medical supplies.
Why Should Your Shopify Business Consider Accepting HSA/FSA?
As an ecommerce health, wellness, or fitness company, accepting HSA and FSA payments is a win-win for you and your customer. By doing so, you can help your customers improve health outcomes while helping them save money — all without needing to resort to sales or discounts.
Sounds like a no-brainer, but let’s dive a little deeper into the overall market.
More Facts About HSAs/FSAs:
Rapidly growing: Between 2017 and 2022, HSA accounts grew by 60%, reaching 36 million accounts and covering 60 million people.
Tax incentive: Consumers, on average, save 30 to 40% on purchases they make with their accounts. And they must spend these funds on health or wellness-related products or services.
Wealthy contributors: The majority of account owners who contribute to their HSA have incomes over $200,000 per year.
1) A growing market
HSAs and FSAs have undergone rapid growth since they were introduced (in 2003 and 1978, respectively).
This trend is being driven for a few reasons:
More employers are moving to high-deductible health plans (HDHP) which are commonly paired with an HSA.
Consumers are using these accounts to help cover rising health care costs and to save money on present day out-of-pocket health-related expenses.
Growing awareness of the accounts themselves along with the flexibility and opportunities they provide.
Beyond empowering customers to take a more preventative approach to their health, these accounts help them save money too.
2) Cost savings for consumers
The average American spends nearly $6,000 a year on out-of-pocket health-care costs, according to the latest consumer spending data from the Bureau of Labor Statistics. Expenses include things like insurance, elective surgeries, prescriptions and medical supplies.
This highlights the savings potential for consumers if they use their HSA or FSA.
Since consumers aren't being taxed on the money put into or taken out of their HSA or FSA (as long as it’s for a qualified medical expense), they save when they use their account. Another way to look at it, accepting HSA/FSA is like offering customers a 30 to 40% discount, which is important because price is one of the main reasons consumers abandon their carts.
That’s what we see as well. From a survey of 100 customers who purchased via Flex in 2023, nearly 70% of respondents said “it allowed me to afford the purchase” when asked about their primary motivation for using their HSA/FSA card.
3) Wealthier and proactive account owners
According to a CNBC/Morning Consult survey from 2019, 60% of HSA owners are between the ages of 18-54, with Millenials and Gen Xers making up the bulk. These are the generations who make up the majority of purchasing power today.
Of those who make contributions to HSAs, a majority have yearly incomes over $100,000. They typically use their funds too, the average account holder spends about 96% of their contributions on qualified expenses each year.
In other words, most HSA holders are using their accounts to reduce costs for healthcare-related expenses and they want to be able to use their funds with merchants. According to our 2023 survey, 92% of respondents said they are likely to shop at a merchant again if they accept HSA/FSAs.
Ready to Accept HSA and FSA Payments in Your Shopify Store?
One of the easiest ways you can boost sales on your Shopify store is by accepting Health Savings Account (HSA) and Flexible Spending Account (FSA) payments. However, you can’t automatically accept HSA and FSA payments via Shopify (though we can help with that).
This is because HSA and FSA cards can only be used at medical institutions (i.e., a hospital or dentist's office) and retailers with specific inventory management systems and products that are approved for the Eligible Product List.
As a result, most consumer wellness, fitness, nutrition, and ecommerce companies selling health-related products are not able to accept HSA/FSAs. If you’d like to accept HSA/FSA payments, you can read our article to learn how to get your products on the HSA/FSA eligible list or feel free to reach out to us and we can help you through the process.
Unlock Healthcare Spending by Accepting HSA/FSA Payments on Shopify
You started your business to help people live healthier lives.
We understand that, and that’s why we founded our company too: Our mission with Flex is to make it easier for folks to be proactive about their health.
If you want to make purchasing your product or service easier, reach a growing market, and boost revenue too, accepting HSA and FSA payments is a win-win for healthier and more economic healthcare decisions.
🚀 Fast Facts: Why Should You Consider Accepting HSA/FSA as a Shopify Store?
17% of sales are made via HSA/FSA payments among Flex partners.
AOV is 20% higher for HSA/FSA orders compared to standard orders.
More repeat customers: 92% of surveyed customers said they'll return because HSA/FSA is accepted.
What if you could unlock a $150B market for your Shopify health or wellness business?
Better yet, what if this market was specifically designed to help consumers make health and wellness-related purchases?
Not to Flex 💪, but it’s surprisingly easy: By accepting Health Savings Account (HSA) and Flexible Spending Account (FSA) payments you can support your customers on their health journey, help them save money, and grow your AOV too.
Read on to learn about these health savings accounts, why they are becoming more popular, and how they are already boosting sales for D2C healthcare-related products and services.
First off, What Are Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)?
HSAs and FSAs are tax-advantaged financial accounts set up exclusively for health-related expenses. They are not health insurance, but rather complementary savings accounts that let consumers put money away for medical fees while also reducing their taxable income.
The idea behind these plans is to give consumers more control over their out-of-pocket healthcare spending.
This is because they can put money towards items that might not typically be covered by health insurance — think fitness and sleep trackers, at-home genetic or metabolic tests, smart baby monitors, and a whole range of other consumer-focused products. The funds can also be put towards common medical expenses such as elective surgeries, prescriptions, and medical supplies.
Why Should Your Shopify Business Consider Accepting HSA/FSA?
As an ecommerce health, wellness, or fitness company, accepting HSA and FSA payments is a win-win for you and your customer. By doing so, you can help your customers improve health outcomes while helping them save money — all without needing to resort to sales or discounts.
Sounds like a no-brainer, but let’s dive a little deeper into the overall market.
More Facts About HSAs/FSAs:
Rapidly growing: Between 2017 and 2022, HSA accounts grew by 60%, reaching 36 million accounts and covering 60 million people.
Tax incentive: Consumers, on average, save 30 to 40% on purchases they make with their accounts. And they must spend these funds on health or wellness-related products or services.
Wealthy contributors: The majority of account owners who contribute to their HSA have incomes over $200,000 per year.
1) A growing market
HSAs and FSAs have undergone rapid growth since they were introduced (in 2003 and 1978, respectively).
This trend is being driven for a few reasons:
More employers are moving to high-deductible health plans (HDHP) which are commonly paired with an HSA.
Consumers are using these accounts to help cover rising health care costs and to save money on present day out-of-pocket health-related expenses.
Growing awareness of the accounts themselves along with the flexibility and opportunities they provide.
Beyond empowering customers to take a more preventative approach to their health, these accounts help them save money too.
2) Cost savings for consumers
The average American spends nearly $6,000 a year on out-of-pocket health-care costs, according to the latest consumer spending data from the Bureau of Labor Statistics. Expenses include things like insurance, elective surgeries, prescriptions and medical supplies.
This highlights the savings potential for consumers if they use their HSA or FSA.
Since consumers aren't being taxed on the money put into or taken out of their HSA or FSA (as long as it’s for a qualified medical expense), they save when they use their account. Another way to look at it, accepting HSA/FSA is like offering customers a 30 to 40% discount, which is important because price is one of the main reasons consumers abandon their carts.
That’s what we see as well. From a survey of 100 customers who purchased via Flex in 2023, nearly 70% of respondents said “it allowed me to afford the purchase” when asked about their primary motivation for using their HSA/FSA card.
3) Wealthier and proactive account owners
According to a CNBC/Morning Consult survey from 2019, 60% of HSA owners are between the ages of 18-54, with Millenials and Gen Xers making up the bulk. These are the generations who make up the majority of purchasing power today.
Of those who make contributions to HSAs, a majority have yearly incomes over $100,000. They typically use their funds too, the average account holder spends about 96% of their contributions on qualified expenses each year.
In other words, most HSA holders are using their accounts to reduce costs for healthcare-related expenses and they want to be able to use their funds with merchants. According to our 2023 survey, 92% of respondents said they are likely to shop at a merchant again if they accept HSA/FSAs.
Ready to Accept HSA and FSA Payments in Your Shopify Store?
One of the easiest ways you can boost sales on your Shopify store is by accepting Health Savings Account (HSA) and Flexible Spending Account (FSA) payments. However, you can’t automatically accept HSA and FSA payments via Shopify (though we can help with that).
This is because HSA and FSA cards can only be used at medical institutions (i.e., a hospital or dentist's office) and retailers with specific inventory management systems and products that are approved for the Eligible Product List.
As a result, most consumer wellness, fitness, nutrition, and ecommerce companies selling health-related products are not able to accept HSA/FSAs. If you’d like to accept HSA/FSA payments, you can read our article to learn how to get your products on the HSA/FSA eligible list or feel free to reach out to us and we can help you through the process.
Unlock Healthcare Spending by Accepting HSA/FSA Payments on Shopify
You started your business to help people live healthier lives.
We understand that, and that’s why we founded our company too: Our mission with Flex is to make it easier for folks to be proactive about their health.
If you want to make purchasing your product or service easier, reach a growing market, and boost revenue too, accepting HSA and FSA payments is a win-win for healthier and more economic healthcare decisions.
Flex is the easiest way for direct to consumer brands and retailers to accept HSA/FSA for their products. From fitness and nutrition, to sleep and mental health, Flex takes a holistic view of healthcare and enables consumers to use their pre-tax money to do the same.