|[July 02, 2014]
BeneStream Closes $1.58 Million Investment Round for Alternative Solution That Helps Employers Meet the Affordable Care Act's Employer Mandate Requirements
NEW YORK --(Business Wire)--
a health tech startup that provides an alternative solution for
employers to satisfy the Employee Mandate portion of the Affordable Care
Act by handling the enrollment of qualifying low-income workers in
Medicaid, rather than private insurance, today announced the close of
its seed round of funding. The company raised $1.58 million from angel
investors to support anticipated demand resulting from the Employer
Mandate taking effect January 1, 2015. BeneStream's Board of Advisors is
a who's-who of the labor, tech investment, health insurance, and health
tech sectors: Andy Stern, Esther Dyson, Kevin Hill, formerly of Oxford
Health, Martin Babinec who founded TriNet, and Ashok Subramanian, CEO
and Co-founder of Liazon, among others.
"Our investors are excited about the win-win value proposition of
enrolling lower income-workers in Medicaid. Businesses will do right by
their workers while saving between 80% and 90% of their insurance
premium costs," said Ben Geyerhahn, CEO and Founder.
BeneStream makes it possible for employers to assess who among their
low-income staff is eligible for Medicaid and then guide qualifying
employees through the enrollment process. A typically confusing and
time-consuming process is made easy for employees, while significantly
saving companies money. At the same time, BeneStream helps employers
ensure that their entire staff has health insurance and that the company
isn't at risk of violation and fines.
"The Affordable Care Act was designed to ensure that everyone has access
to health coverage and by doing so, lower the healthcare cost burden
placed on taxpayers," said Andy Stern, President Emeritus of the Service
Employees International Union (SEIU). "To accomplish this, it's
essential that we ensure that low-income workers use this benefit that
they're entitled to or they are likely to avoid coverage altogether."
Employers in historically low-profit margin industries are facing
millions of dollars of increased costs due to the Employer Mandate and
for many this is a major burden that will significantly impact the
company's financial health. At the same time, many employees will have
an additional expense, upwards of $150 per month, which is enough to be
potentially devastating for low-income households. Medicaid expansion
was passed to provide quality coverage and assist low-income workers and
now covers those earning up to 138% of the poverty rate, i.e. the
"working poor," which for a family of four is $32,900 per year.
"The Affordable Care Act comes at a significant new cost to employers
who must add new fundamentals such as payroll analysis and true health
risk management for thoughtful plan funding. BeneStream is a radically
transformative healthcare cost-saving strategy for businesses. It isn't
an industry standard yet, but it will be," said George Duczak, Owner and
Founder of The American Worker, and a BeneStream investor.
The seed round was led by Serious Change, LP and the firm's Managing
Director, Josh Mailman, and The Social Entrepreneurs Fund. Also
participating in the round are:
Angel Round Capital Fund LP (ARC)
Kevin R. Hill, former Executive VP of Sales and Business Development of
Esther Dyson, Chairman, EDventure Holdings
Jeffrey Stephen Wald, Founder, COO and CFO, World Market
Martin Babinec, Founder, Director, TriNet
Martin Investment Holdings, LLC
George V. Duczak, Owner and Founder, The American Worker
Rafael Musher, Founder & CEO of Stax Inc.
A complete list of BeneStream's board can be found at http://benestream.com/about/.
provides the only alternative solution for employers to satisfy the
Employee Mandate portion of the Affordable Care Act by handling the
enrollment of qualifying employees in Medicaid, rather than private
insurance. Medicaid enrollment is a personal benefit that companies do
not typically endeavor to handle for their staff. BeneStream was founded
by Benjamin Geyerhahn, a healthcare policy expert and member of New York
Governor Cuomo's Health Benefit Exchange Regional Advisory Committee.
The company employs a combination of screening and monitoring software
and a multilingual call center.
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