BeneStream Completes $1.58M Investment Round

BeneStream reported the close of its seed round of funding.

According to a release, 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 percent and 90 percent 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.

"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."

BeneStream provides an 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.

((Comments on this story may be sent to [email protected]))