Amazon Will Accept Health Savings Accounts, Flex Spending on Products
Amazon will now accept funds from health savings accounts and flexible savings accounts when consumers purchase medical supplies.
Source: Thinkstock
By Jessica Kent
- Amazon will now accept consumers’ health savings accounts and flexible savings accounts for purchases of qualifying health-related products, a report from CNBC revealed. This will allow people to contribute a portion of their pre-tax salary or wages to cover medical expenses that would otherwise be out-of-pocket.
Individuals with health insurance can now use their health savings accounts (HSA) and flexible savings accounts (FSA) debit cards toward eligible purchases in the Amazon FSA Marketplace, which could include items such as prescription drugs and medical supplies like glucometers.
“Customers now have the flexibility to use FSA/HSA cards on a wide range of eligible over-the-counter purchases, eliminating the need to pay out-of-pocket or submit receipts for reimbursement,” an Amazon spokesperson said.
On the company’s new portal for FSA and HSA spending, Amazon says the feature will take the guesswork out of shopping for FSA-eligible items by providing a large selection of eligible products with the brand names you trust and a few more that we are happy to help you discover. You are just a few clicks away from saving time and money with each order.”
“Don’t let your FSA dollars go to waste: check out our vast supply of health and medical supplies like heating pads, hearing aids, knee braces, and first aid supplies, as well as products for flu & allergy, digestion, indigestion, nausea, and just about everything else you might need to stay healthy year-round. Stocking up your medicine cabinet is just a few clicks away.”
Customers can also use other forms of payment and use a receipt to apply for reimbursement from their HSA account.
The company began rolling out the new feature in early March 2019, adding to Amazon’s efforts to move into the healthcare market. CNBC reported in May 2018 that an internal team was exploring how Alexa can help consumers manage chronic disease and maintain wellness.
Just one month later, in June 2018, Amazon acquired PillPack, an internet pharmacy company that offers home delivery of prescription and over-the-counter drugs.
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology,” Jeff Wilke, Amazon CEO Worldwide Consumer, said at the time.
“PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”
The move indicated an interest in adding prescription drugs to its marketplace, but experts believe that Amazon may face challenges if it pursues the prescription arena. To sell prescription drugs, Amazon will need to work with pharmacy benefit managers in order to take insurance.
Accepting HSA and FSA dollars may ease the transition into the prescription market. Amazon could start by offering lower-cost medications that consumers might consider purchasing with flex spending funds, then move into higher-end products as the company establishes industry relationships.
Amazon already sells thousands of products that qualify for HSA and FSA spending, including baby and child care items, orthopedic supports, certain durable medical devices, first aid items, and over-the-counter medications for colds and allergies.
