NEW YORK--(BUSINESS WIRE)--BeneStream today announced its Series A round of financing. BeneStream is a health technology company that connects qualified employees to government health benefits, saving their employers the cost of insuring those employees. The company raised $4.26 million from health insurance industry investors and existing investors to support anticipated demand leading up to and through the fall enrollment period. The company is currently working with more than half of the top 10 largest brokerages in the country.
“Our Series A financing is led by health insurance professionals who understand the need for a product that reduces the overall cost of health insurance to businesses while increasing employee access to health benefits,” said Ben Geyerhahn, CEO and Founder. “With this round of funding, BeneStream will deepen its broker partner networks as well as begin to expand its relationships among companies that process the Work Opportunity Tax Credit (WOTC).”
BeneStream’s process moves eligible employees onto free government sponsored health insurance and is proven to deliver cost savings as a component of a healthcare package for qualified companies. The process utilizes the Medicaid expansion portion of the ACA which was designed to help employers save and provide employees with quality insurance through Medicaid enrollment.
"I am thrilled to join BeneStream's board as Chairman. Enrolling eligible workers in Medicaid will become an industry standard best practice for businesses to manage their healthcare costs. BeneStream created the market and will lead it," said Michael Sachs, who led the Series A round with his firm TLSG Investments, LLC, and who will join and chair the BeneStream board. Sachs was co-founder of bSwift, recently acquired by Aetna, Inc., and is a veteran health care executive who brings substantial experience to the board. Sachs is a pioneer in the healthcare analytics field, founding several companies in the area, and most recently selling Sg2, LLC to MedAssets, Inc.
Sachs will join existing board members Julius Mokrauer and Kevin Hill. Mokrauer is an investment manager for Serious Change Investments LP, which led BeneStream’s Seed investment round. Hill is a former EVP of Oxford Health Plans and CEO of United Healthcare’s Northeast Division. He has served as an advisor, board member, or chairman of several VC-backed entities including Liazon, HealthPlanOne, Symbiosis Health, Picwell and CheckPointHR.
BeneStream provides a powerful government incentive to businesses, lowering burdensome healthcare costs and providing risk mitigation to spur new job creation. In addition to its existing sales channel, BeneStream has identified significant synergies between its Medicaid Migration™ product and the utilization of federal and state hiring incentives for employers. Accordingly, the company is investing in partnerships with Human Capital Management providers who administer WOTC, a federal tax credit designed to encourage employers to hire targeted populations including veterans and low-income individuals who participate in the Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP).
The lead investor in the Series A round is TLSG Investments, LLC. Other Series A investors include Kapor Capital and Relativity Healthcare Partners as well as seed investors Serious Change, LP, Kevin Hill, Martin Babinec, and George V. Duczak.
A complete list of BeneStream’s board members can be found at http://benestream.com/about/.
ABOUT BENESTREAM—The Medicaid Migration Company™
BeneStream provides businesses with innovative, cost-saving products and services by connecting their qualified employees to government benefits. The company's exclusive product, Medicaid Migration™, delivers proven savings to employers by moving qualified employees onto free government-sponsored health insurance.
BeneStream’s founders launched the business with a grant from the Ford Foundation and with support from Stax Inc.’s Dev Co. With this support the company developed its value proposition and core business model in time to meet the demand created by full implementation of the Affordable Care Act.
