(Image credit: Chris 73.)
BlueCross BlueShield Venture Partners and Sandbox Advantage Fund, both based in Chicago, have invested $2 million in BeneStream (New York), closing out the healthcare technology vendor’s Series A round of financing, bringing the total to $6.26 million. BeneStream’s flagship product Medicaid Migration is designed to helps workers access affordable, quality health coverage and other benefits.
“This investment by BlueCross BlueShield Venture Partners and Sandbox Advantage Fund demonstrates that health insurance companies understand the importance of Medicaid enrollment as a strategy for managing the overall cost of health insurance for businesses while increasing employee access to health benefits,” comments Ben Geyerhahn, CEO, BeneStream. “We look forward to working with the Blue Cross Blue Shield Venture Partners and its limited partners to support our efforts to seek distribution at national scale.”
BeneStream’s process informs employees whether they qualify for government sponsored health insurance, a process which the vendor says is proven to deliver cost savings as a component of a health insurance package for qualified companies. The process utilizes the Medicaid expansion portion of the Affordable Care Act (ACA).
“I am excited to join BeneStream’s board as the team is addressing a key piece of the benefits puzzle,” comments Anna Haghgooie, Managing Director of Sandbox Industries, who will represent BlueCross BlueShield Venture Partners on the Board. “The company is emerging as a market leader at informing employees of the benefits to which they are qualified. BeneStream is also well positioned to capitalize on opportunities that emerge from further expansion of Medicaid and the proliferation of Managed Medicaid.”
The funding round was lead by Michael Sachs, who is now Chairman of BeneStream’s Board, and his firm TLSG Investments, LLC, according to a BeneStream statement. Haghgooie joins other 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’s Other Series A investors include Kapor Capital and Relativity Healthcare Partners as well as seed investors Serious Change, LP, Kevin Hill, Martin Babinec, ARC Angel and George V. Duczak.