Trump-Era Health savings Account Expansion Benefits Wealthier Americans, Raises Ethical Questions
When the “One Big Beautiful Bill Act” was signed into law by then-President Donald Trump in July, the White House promised it would “help more American families get the health care they need at a price they can afford.” However, a recent report from the nonpartisan Government Accountability Office (GAO), released in September, reveals a different reality: Health Savings Accounts (HSAs) are primarily being utilized by wealthier, white Americans who already have employer-sponsored health insurance.
Now,the law is poised too further expand HSAs,prompting companies to capitalize on the growing market. Major retailers like Amazon, Walmart, and Target are developing dedicated online storefronts offering products eligible for purchase with HSA funds – including devices, medications, and supplies.
This expansion has also spurred a wave of startups focused on securing fast medical provider approval for a range of items, memberships, and health services, some of which are quite expensive.
Truemed, co-founded in 2022 by Calley Means – a close ally of current Health and Human Services (HHS) Secretary Robert F. Kennedy Jr.- has become a leading player in this space. The company currently allows customers to purchase items like a $9,000 red cedar ice bath, a $2,000 hemlock sauna, and a $1,700 automatically rocking bassinet using HSA funds.
While Truemed’s executives state thier most popular products are lower-cost fitness offerings like kettlebells, supplements, treadmills, and gym memberships, CEO Justin Mares asserts, “What we’ve seen at Truemed is that, when given the choice, Americans choose to invest their health care dollars in these kinds of proven lifestyle interventions.”
The potential for conflicts of interest has emerged due to Means’ recent career trajectory. He joined the Department of health and Human Services in November after a period at the White House during the signing of the “One Big Beautiful Bill Act.” Truemed’s general counsel, Joe Vladeck, confirmed means left the company in August.
When questioned about means potentially benefiting from the law’s expansion of HSAs, HHS spokeswoman Emily Hilliard stated that ”Calley Means will not personally benefit financially from this proposal as he will be divesting from his company since he has been hired at HHS as a senior advisor supporting food and nutrition policy.”
Details regarding how Means will divest from Truemed,which is privately held and not publicly traded,have not yet been disclosed.
(This article is based on reporting from KFF Health news,a national newsroom producing in-depth journalism about health issues,and is one of the core operating programs at KFF – the independent source for health policy research,polling,and journalism.)
