$FMKT: How Deregulation Is Powering Digital Healthcare Through Hims & Hers Health
Description
Imagine solving a personal health issue without ever stepping into a doctorâs office. Not long ago, that would have sounded unrealisticâmaybe even illegal. Today itâs normal, and one big reason is something that doesnât often make headlines: deregulation. In the case of Hims & Hers Health, Inc., loosening telehealth rules transformed a niche startup into a national platform. Itâs also why the Free Markets ETF (FMKT)âa fund designed to benefit from deregulation that I launched in June with 3 other partnersâholds Hims & Hers in its portfolio.
Hims & Hers makes awkward doctor visits unnecessary. The company runs a telehealth platform connecting patients with licensed providers for hair loss, mental health, sexual wellness, and primary care. It has even expanded into weight-loss treatments, providing access to popular medications through online consultations. Patients interact through an app or website, receive prescriptions, and get medications delivered directly. Itâs healthcare delivered like e-commerceâand consumers have embraced it.
None of this would exist without policy change. Telemedicine once faced heavy restrictions: doctors couldnât treat new patients without in-person exams, and certain prescriptions were banned online. The COVID-19 pandemic changed that. Emergency rules in 2020 allowed remote visits and electronic prescribing . Those temporary changes are now largely permanent. The Drug Enforcement Administration (DEA) recently extended telehealth flexibilities that let providers prescribe controlled medications without in-person visits through at least 2025 . This means patients using Hims & Hers for anxiety, ADHD, or similar conditions can keep receiving care virtually. Deregulation, in this case, directly expanded both access and market opportunity.
The shift goes beyond healthcare. In 2024, the U.S. Supreme Court overturned the âChevron doctrine,â which had long given regulators broad interpretive power. The decision limited agency authority, a move described by analysts as âa massive win for companies dealing with big regulatory burdensâ. Around the same time, policymakers prioritized scaling back rules across industries. The Free Markets ETF was launched in mid-2025 to invest in companies poised to benefit from that trend. \
Healthcare has long been tangled in red tape, which is why FMKTâs inclusion of Hims & Hers makes sense. Regulation costs American businesses roughly $2.1 trillion annually and rolling it back often improves efficiency and innovation[^2]. Telehealth shows that effect clearly. By removing barriers to virtual care, regulators gave companies like Hims & Hers a green light to scale nationwide. States have since updated their laws to formally allow online doctor-patient relationships and asynchronous care (via messaging or questionnaires). Public support is strong: about 67 percent of Americans favor expanding access to asynchronous telehealth, with bipartisan backing.
That policy support has fueled rapid growth. In the second quarter of 2025, Hims & Hersâ revenue rose 73 percent year-over-year to $545 million, while net profit grew to $42.5 million. The company now serves more than 2.4 million subscribers, a 31 percent increase from the prior year. Fewer regulatory hurdles and nationwide reach helped accelerate that expansion.
Another advantage lies in the companyâs structure. Hims & Hers acts as a platform linking patients, clinicians, and pharmaciesânot as a medical provider or drugmaker. Because of this, it is not subject to the FDAâs prescription-drug marketing rules . That allows more flexibility in direct-to-consumer advertising for lifestyle medications such as ED pills or antidepressants . The companyâs marketing, sleek and digital-first, reaches customers faster and with fewer compliance costs. Itâs another form of deregulation in practiceâthe absence of traditional constraints that larger healthcare firms still face.
Still, investors must recognize the risks. The same deregulation that boosted Hims & Hers could reverse if authorities tighten oversight. Some experts worry about overprescription or inconsistent care when consultations occur entirely online. Hims & Hers uses board-certified clinicians and strict protocols, but any controversy in telehealth prescribing could invite scrutiny. FMKT investors, by extension, are betting that policymakers will continue to favor innovation over restriction.
Competition is another challenge. Amazon entered telehealth in 2024, offering online clinic visits and free prescription delivery for Prime members The announcement caused Hims & Hers shares to drop 15 percent that day . Analysts called Amazonâs entry a âserious competitive threatâ due to its pricing power and reach. To stay competitive, Hims & Hers emphasizes personalized careâcustom-compounded prescriptions and tailored programs that big platforms canât easily replicate.
The company is also moving into new areas such as at-home lab testing and longevity programs to deepen customer relationships and diversify revenue[^3]. These services reinforce Hims & Hersâ positioning as a long-term health partner rather than a transactional telemedicine provider. Itâs an effort to build loyalty in an increasingly competitive space.
For investors, Hims & Hers offers a textbook example of how deregulation can alter an industryâs trajectory. Policy shifts can unlock growth that technology alone cannot. In this case, a few key regulatory relaxations transformed healthcare access, allowed scalable digital infrastructure, and enabled profitability. FMKT was built to capture precisely these kinds of storiesâwhere less bureaucracy leads to more innovation. The fundâs holdings span multiple sectors, but its philosophy is consistent: companies thrive when free-market conditions allow them to operate with fewer barriers.
The broader takeaway for investors is straightforward. Hims & Hersâ inclusion in FMKT signals confidence that deregulation will continue to favor companies blending technology and healthcare access. If the current deregulatory climate persists, this business stands to grow alongside it. Its addressable marketâwellness, primary care, mental health, and now weight managementâis expanding rapidly. At the same time, its digital infrastructure keeps costs low and scalability high.
Of course, no one should assume perpetual policy tailwinds. Political cycles shift, and healthcare oversight tends to tighten after growth spurts. Yet deregulation, once it gains public approval, can be difficult to reverse. Consumers whoâve tasted convenience rarely accept going back to the old system. That reality gives Hims & Hers a lasting advantage even if some rules are later reimposed.
In the end, deregulation may sound like an abstract policy idea, but its impact is tangible. Itâs visible in the millions of Americans who now manage their health from home, and in companies like Hims & Hers that built a thriving business by serving that demand. The Free Markets ETF invests in exactly these types of outcomesâwhere market freedom drives efficiency and innovation.
For investors who believe that easing regulation unlocks growth across sectors, Hims & Hers Health offers a timely example. Its story isnât about politics or headlines. Itâs about how removing friction can let entrepreneurs reimagine industries. Deregulation, in this sense, is less about cutting rules and more about creating room for progress. FMKTâs bet on Hims & Hers is, at its core, a bet on that simple idea: when the rules of the game change to favor competition and consumer choice, value creation tends to follow.
Footnotes
Suzanne McGee, âUS firms launch ETF to capitalize on Trumpâs deregulation push,â Reuters, June 10, 2025 .
Sykon Asset Management, âAbout FMKT â Free
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