CEO Corner: Truemed’s Justin Mares on HSA/FSA Funds in Fitness
Truemed is helping pioneer the fitness-as-healthcare movement, partnering with brands including Peloton, CorePower Yoga and Anytime Fitness
Healthcare reform is talked about in the news a lot these days, although it’s often viewed as an unattainable ideal by the media and general public alike. For Truemed, however, it’s already here.
Founded by health and wellness entrepreneur Justin Mares and reformed former pharma lobbyist Calley Means, Truemed provides a platform that allows consumers to purchase fitness and wellness products including gym memberships, supplements and recovery gear using tax-free Health Savings Account (HSA) and Flexible Spending Account (FSA) funds.
On a mission to transform Americans’ health by making preventive care more widely available and affordable, Truemed already has partnerships with top fitness and wellness brands including Peloton, CorePower Yoga and Anytime Fitness, to name just a few.
Mares, who serves as Truemed’s co-founder and CEO, sat down with Athletech News to discuss the rise of HSA/FSA funds in fitness, explain what sets Truemed apart from similar platforms and share his thoughts on what the U.S. government can do to implement meaningful healthcare reform.
The following conversation has been lightly edited for clarity and length.
Athletech News: Can you tell us about your background and why you decided to co-found Truemed?
Justin Mares: I have a background in founding and scaling health and wellness startups, including Kettle & Fire, Perfect Keto and Surely. I went through my own journey with health and fitness in college, which is when I realized how transformational exercise and nutrition can be for both physical and mental health. The more I learned about the healthcare system, the more I realized the extent to which it’s built around medications and interventions that merely manage illnesses over a long period of time rather than treat them or prevent them from happening in the first place – 97% of medical costs occur after people are already sick.
One of our goals with Truemed was to introduce the idea that fitness, supplements and recovery are effective interventions in the fight against chronic disease, and then streamline the process for qualified customers to use HSA and FSA funds to purchase products and services that prevent or mitigate these conditions. Most people know they can use FSA funds for medical expenses like deductibles, co-pays and prescriptions, but they might be surprised by the broader range of options available. More and more, root-cause interventions like fitness programs, supplements, recovery tools and health technology are being recognized for their power to prevent and manage conditions such as diabetes and heart disease.
ATN: Are enough Americans aware that HSA/FSA funds exist and that they can use them to purchase fitness and wellness products? If not, what’s the key to wider awareness?
JM: I think a lot of people are still a bit overwhelmed by the concept, and don’t realize how simple it can be to use HSA/FSA funds for such a wide range of products and services. Part of this is because, prior to a platform like Truemed, the process was much more arduous for these specific types of purchases. Consumers would have to schedule a doctor’s appointment, describe their health history and goals in detail, ask them to fill out a Letter of Medical Necessity (LMN), pay a fee, and then wait potentially for weeks for their claim to be approved.
Our goal is that by integrating all of this directly into the payment flow – it’s as easy as clicking “Pay with HSA/FSA” at checkout – people will be able to empower themselves to use pre-tax savings for products that manage chronic diseases but that may not previously have been recognized by medical institutions as preventative medicine. During my time at Truemed, we’ve enabled nearly 200,000 Americans to purchase root-cause items with HSA/FSA funds, and we’re confident that this movement will only continue to grow as more people catch on and realize the potential of what they can access.
ATN: Truemed already has partnerships with top fitness and wellness brands like Peloton, CorePower Yoga and others. How have you been able to convince these brands to join the HSA/FSA movement?
JM: We’ve been extremely encouraged by how many incredible, consumer-loved brands have joined our mission and embraced Truemed as a core part of their business. One of the ways we’ve been successful in recruiting additional companies is by word of mouth, as brands see how much new business Truemed drives for them – in some cases, as much as 15-20% of new customers are ordering through Truemed.
We’re also seeing that brands are not only getting more first-time customers through us but also different segments of the population that tend to be more cost-conscious. This is really heartening for us, as it shows that what we’re trying to do is working when it comes to increasing accessibility for consumers who want these products but otherwise may not have been able to purchase them without an HSA/FSA fund.
ATN: A few other HSA/FSA platforms have cropped up recently. What separates Truemed from its competitors?
JM: In addition to being the biggest HSA/FSA telehealth platform and working with the best merchants, we’re also the ones who essentially carved out this space and made it what it is. Our brands also tend to see the best results as far as conversion rates, average order value (AOV) and other metrics in comparison to our competitors.
ATN: Do bills such as the PHIT Act, which would amend the IRS code to treat physical activity as preventive healthcare covered by allowable HSA/FSA spending, have a realistic chance of being passed? Or is a platform like Truemed a more realistic long-term solution?
JM: We aren’t sure if (PHIT) will pass, but what we do know is that there are a whole class of root-cause chronic disease interventions that are eligible and work today, they just require a doctor to issue an LMN.
ATN: There’s been a lot of speculation around what President Trump may do in his second term regarding healthcare reform. What would you like to see the U.S. government do to help Americans become healthier?
JM: Several steps need to be taken in order to bolster the health of the American people on a societal level, all of which link back to embracing preventative care rather than sickcare. Due to the current structure of the healthcare system, it’s a lot more profitable for doctors to treat sick patients rather than address root causes and keep people healthy from the start, so the more we can do to reveal some of these corrupt practices, the more individuals will be able to take the power back into their own hands.
As far as specific policy shifts, some sweeping changes that I’d love to see in the near future include ridding our food supply of dangerous chemicals, pesticides and dyes, eliminating our dependence on ultra-processed foods, and removing conflicts of interest from major institutions. In regard to this last point, many people might not realize that big pharmaceutical companies influence everything from nutritional guidance and research to mainstream news to the medications doctors choose to prescribe. Until we separate these larger entities from one another, patients will continue to be routed toward pharmaceuticals as the only solution, rather than first exploring the impact of lifestyle interventions.
ATN: What’s your vision for the future of Truemed over the next few years? Could the company expand into other areas besides HSA/FSA payments?
JM: One of our main goals is to continue partnering with great brands that are passionate about making preventative care more accessible for people trying to mitigate chronic health conditions. It’s been great seeing how many companies have already embraced what we’re trying to do over the past year, and we’re confident that we’ll have many more in the months to come, especially following the announcements of some industry leaders like Peloton, CorePower Yoga and Bioniq.
Moving forward, we hope to continue building on categories that are already represented and expand into others, namely health food options, as well as provide personalized guidance on certain partner brands of ours that could be paired together for optimal impact.