Modernizing the rails for healthcare spending in everyday retail: Our investment in Burst

Health savings accounts (HSAs) and flexible spending accounts (FSAs) are one of the most effective yet underutilized tools consumers have to manage out-of-pocket healthcare costs. Despite broad availability and growing adoption, a meaningful share of eligible retail medical spending still flows through standard credit and debit cards. The issue isn’t access to HSA/FSA funds, but friction: using them in everyday commerce is often harder than it should be. As out-of-pocket costs rise and eligibility for tax-advantaged plans expands, this disconnect between potential value and real-world usability has become increasingly consequential.

Much of this friction stems from how HSA/FSA payments are executed today. Consumers often encounter split tenders, declined transactions, or uncertainty about what qualifies, introducing friction at checkout and slowing down the shopping experience. Many consumers simply don’t use their HSA or FSA cards, even when purchasing eligible products.

This friction matters to retailers, who are economically motivated to make HSA/FSA spending easier. Shoppers who successfully use tax-advantaged funds tend to spend more per visit and return more frequently, increasing overall basket size. But when using HSA/FSA funds feels cumbersome at checkout, many consumers default to standard payment methods, limiting the impact retailers can realize.

Burst is built for a different approach. It flips the standard FSA/HSA payments model by operating entirely post-purchase, eliminating friction at the point of sale. Consumers pay as they normally would using a standard credit or debit card, and Burst identifies eligible items after the transaction and automatically submits reimbursement claims on the consumer’s behalf. By separating payment from eligibility, Burst removes the structural constraints that have historically limited HSA/FSA usage in retail.

Rock Health Capital is investing in Burst’s $3M round alongside Pear VC and Alumni Ventures. We’re excited to partner with Anthony, Shubhi, and the Burst team as they work to make tax-advantaged healthcare spending easier.

Rock Health Capital is an early-stage venture fund focused on digital health. We would love to hear from you. Get in touch!