Here’s something that’s always bugged me: you can use your Health Savings Account to pay for doctor visits after you get sick, but good luck using it for the gym membership that might keep you healthy in the first place.
Truemed is trying to fix that, and they just raised $34 million to do it.
The San Francisco startup announced its Series A round led by Andreessen Horowitz, with Bessemer Venture Partners, Long Journey Ventures, BoxGroup, and Trust Ventures all chipping in. Their mission? Make it possible to use HSA and FSA dollars for preventive health stuff—the kind of things that might actually keep you out of the doctor’s office.
The Way We Use Healthcare Money Is Backwards
Think about how we handle healthcare spending in this country. We wait until something breaks, then we throw money at fixing it. Got diabetes? Here’s your insulin. Heart disease? Here’s your medication. But try to use your HSA to pay for a Peloton or a gym membership that might help you avoid those problems in the first place? Sorry, doesn’t qualify.
It’s completely backwards.
The numbers tell the story: 76% of Americans are living with a chronic condition. Most of these conditions—diabetes, heart disease, obesity—are heavily influenced by lifestyle. Exercise, sleep, nutrition—the basics actually matter. But the financial tools we have for healthcare aren’t set up to support prevention. They’re set up to pay for treatment after the damage is done.
“HSAs and FSAs are one of the most effective tools available for addressing chronic illness and obesity, and should soon be as ubiquitous as a 401k,” said Justin Mares, Truemed’s founder and CEO. He’s got a point. These accounts offer serious tax advantages, but most people either don’t use them or only use them for traditional medical expenses.
How Truemed Actually Works
Here’s where it gets interesting. Truemed isn’t just saying “use your HSA for whatever.” They’ve built a system that connects clinically supported lifestyle interventions to actual medical conditions. So if you have prediabetes, that gym membership or fitness equipment might qualify as a medically necessary intervention. Same goes for sleep issues, obesity, cardiovascular problems—conditions where lifestyle changes can make a real difference.
The process involves actual clinicians who evaluate whether someone qualifies and provide Letters of Medical Necessity. It’s legit, it’s compliant, and it removes the guesswork from whether your HSA/FSA administrator will approve the expense.
They’ve already partnered with over 3,000 merchants—big names like Peloton, Eight Sleep, Nike Strength, and 24 Hour Fitness. The idea is that when you’re buying something that could legitimately help manage a medical condition, Truemed handles the qualification process and makes it possible to use your pre-tax healthcare dollars.
For people who qualify, that can mean about 30% in savings on average. Not nothing when you’re talking about a $2,000 treadmill or an annual gym membership.
Why This Might Actually Change Things
Truemed’s been growing fast—they’re reporting 3x year-over-year revenue growth for the past two years. They’ve also partnered with Navia Benefit Solutions, which should help them reach more people through existing benefits programs.
What’s compelling about this approach is that it aligns incentives in a way that makes sense. Right now, the system rewards sick care. You only get financial help after you’re already dealing with a problem. Truemed is trying to make it financially viable to invest in staying healthy.
“Combining the world’s top portfolio of preventive products with a tech solution for the HSA/FSA process will help us go beyond a focus on sick care to making preventive lifestyle interventions an everyday approach,” Mares said.
That sounds like marketing speak, but there’s real substance underneath. If you can use tax-advantaged money to buy a standing desk, quality running shoes, or a gym membership when those things are medically necessary, you’re more likely to actually do it.
The Real Test Ahead
Of course, raising $34 million doesn’t automatically mean this becomes the new normal. Truemed needs to navigate complex healthcare regulations, work with insurance companies and benefits administrators, and convince both merchants and consumers that this isn’t some sketchy workaround.
The involvement of Andreessen Horowitz suggests they’ve got a real shot. A16Z doesn’t usually bet on companies that are playing fast and loose with compliance. They’re betting that preventive care can be both legitimate and profitable.
The bigger question is whether this changes how we think about healthcare spending. For decades, HSAs and FSAs have been glorified rainy day funds for medical emergencies. If Truemed succeeds, they could become tools for actually keeping people healthy.
That would be a pretty significant shift. And one that’s probably overdue.