Sika Health — a payment solution that enables ecommerce merchants to accept Health Spending Account (HSA) and Flexible Spending Account (FSA) payments — has launched a new marketplace where consumers can shop directly for HSA- and FSA-eligible products.
Consumers as well as brands and retailers often struggle with an “awareness gap” when it comes to understanding what products are HSA/FSA eligible and how HSA/FSA funds can be spent, due to the complex and sometimes confusing payment processes associated with these pre-tax funds. As a result, it’s estimated that more than 40% of FSA account holders forfeit funds every year by not spending all their pre-tax money before it expires.
With its new marketplace, Sika Health aims to create a one-stop-shop for consumers to use these accounts while also helping health and wellness merchants unlock additional revenue. The Sika Health Marketplace currently features more than 18,000 eligible SKUs from 30+ health and wellness brands, including Therabody, Lola, Felix Gray, SLMD Skincare, Shop Home Med and Elitone.
“Today’s leading health and wellness brands want to forge deeper relationships with their customers,” says Ami Kumordzie, CEO and Founder of Sika Health in a statement. “Our marketplace allows brands and retailers to provide a streamlined process for their customers to shop for HSA/FSA-approved products [that is] as easy as using a gift card at checkout. This is particularly important as the end-of-the-year rush to spend pre-tax dollars intensifies. Our merchants see a spike in sales every time deadlines near, and our secure payment process facilitates this.”
Products on the new website range from skincare, women’s health and mom and baby supplies to eye and ear products, pain relief, personal care and health monitoring wearables. Sika Health’s team of regulatory experts partner directly with brands to ensure their products are compliant with IRS guidelines and the SIGIS (the Special Interest Group for IIAS Standards) eligibility standards, thereby reducing the need for individuals to submit manual claims or reimbursement requests.
“We are thrilled to work alongside Sika to make our award-winning, scientifically proven wellness tech products, designed to solve for real human pain points, more accessible to consumers by allowing them to use their HSA and FSA funds,” said Monty Sharma, CEO and President of Therabody in a statement.
“Fostering period care and sexual wellness product availability is fundamental to our vision at Lola,” said Kelly Murphy, VP of Direct to Consumer and Amazon at Lola in a statement. “Partnering with Sika Health to offer our products for purchase through pre-tax HSA/FSA dollars is the next step toward expanding Lola’s mission to provide safe, clean, accessible period and vaginal care for all.”
Sika isn’t the only online company looking to capture the money consumers often leave on the table with their pre-tax savings account. Just last month, DoorDash expanded its payment options to include HSA and FSA accounts, and Instacart recently followed suit.