Bilt and Walgreens Team on Health Savings Rewards

Bilt has expanded its loyalty rewards program via a partnership with Walgreens.

The collaboration, announced Monday (Aug. 26), includes the introduction of an automatic health savings program, which the companies say is the first time customers can apply any network-branded flexible spending account (FSA) or health savings account (HSA) benefits card to purchases at a major pharmacy chain.

“The new program eliminates the need to carry separate FSA or HSA cards and removes the guesswork in identifying eligible items, addressing the approximately $4 billion in FSA dollars lost annually due to non-use,” Bilt and Walgreens said in a news release.

Among the benefits of the new offering is that it allows members to shop at Walgreens with any linked debit or credit card in their Bilt account. Bilt’s system automatically identifies FSA or HSA eligible items and offers a one-click solution to apply benefits.

This feature, the companies said, simplifies healthcare shopping by helping customers see which items are eligible for FSA or HSA benefits ahead of purchase.

“At Walgreens, we’re committed to improving the health and wellness experience for our customers and to meet them when, where and how they want to engage,” said Bala Visalatha, Walgreens’ chief product and growth officer.

“This collaboration with Bilt, powered by the Banyan Platform, helps enhance the front of store and omnichannel experience for our customers and allows us to offer an unprecedented level of convenience, making it easier than ever for our customers to maximize their health and wellness benefits while earning rewards on everyday purchases,” he added.

Research from PYMNTS Intelligence and Banyan have found that card-linked offers, which provide savings or rewards tied to a merchant or a product, are popular with cardholders.

Around 40% of cardholders consistently use these offers, while 93% of that group plans to maintain or increase their use of these offers in the next year, according to “Card-Linked Offer Growth Hinges on First-Time Users,” a PYMNTS Intelligence and Banyan collaboration.

Bilt was valued at $3.2 billion following a funding round earlier this month, in which the company raised $150 million from a round led by the Ontario Teachers’ Pension Plan. That came just months after a $200 million round valued it at $3.1 billion.

The company did not include a new valuation for the new funding round, though a report from Bloomberg News pegged it at $3.2 billion.