Talkspace Goes Retail, Partners with Amazon’s Health Business

Digital mental health provider Talkspace Inc. (Nasdaq: TALK) is now selling its services on Amazon.

Specifically, Talkspace will be offered through Amazon Health Services’ Health Conditions Programs. These programs are meant to help consumers get access to insurance-covered services that they might not otherwise be able to access.

Talkspace is the first virtual behavioral health provider to participate in this program, according to a company announcement.

“This partnership with Amazon marks a pivotal moment in our mission to provide high-quality mental health care to the majority of Americans,” Dr. Jon Cohen, CEO of Talkspace, said in the announcement. “By making it easier for millions of people across the U.S. to discover their behavioral health benefits while shopping Amazon, we can ensure more people gain access to more than 5,000 licensed therapists they may not have known about, helping them begin their therapy journey with Talkspace.”

Amazon’s first condition-specific partnership was with the digital cardiometabolic and musculoskeletal services company Omada Health. It was announced in January.

The partnership is a noted expansion of Talkspace’s B2B-centered growth strategy. Following its post-IPO pivot, the company focused on partnering with health plans, employers and, more recently, government entities such as cities, counties and school districts.

Amazon users searching for mental health-related topics will be able to find Amazon Health Services’ Health Conditions Program. Amazon generated $575 billion in revenue in 2023, according to public financial documents.

“Amazon aims to simplify the journey to better health by making it easier for customers to discover and access the products, services and professionals they need,” Aaron Martin, vice president of health care at Amazon, said in a news release. “Our collaboration with Talkspace will not only help customers discover their mental health benefits but also, if they choose, gain access to their own dedicated, licensed therapist in a fraction of the time it might take to see someone in-person.”

The news led to a modest bump in Talkspace’s stock price. As of the writing of this article, Talkspace traded at $2.21 per share, up 21% in the past week. However, the company’s price is down 7% year to date.

The Amazon-Talkspace experience starts with a verification of benefits process that checks if Talkspace works with that person’s health plan. The simplified intake process helps ensure a smooth process, according to the companies.

Previous polling finds that 58% of insured adults have problems using their health insurance. That same poll shows that 27% of insured adults experienced their health plan covering less than what they thought it would; about 26% had issues getting time with an in-network provider.

Through its partnership and B2B-focused efforts, Talkspace is now covered for 150 million people, the company said in its announcement. Its revenue grew to $46 million, and adjusted earnings increased to $1.2 million in the second quarter.

Its latest major expansion saw the launch into the traditional Medicare and Medicare Advantage markets. Talkspace plans to be available to seniors on traditional Medicare and be in-network with several Medicare Advantage plans by the end of the year.