Benefitbay, a leading Individual Coverage Health Reimbursement Arrangement (ICHRA) platform serving brokerages, employers and employees across the US, has reportedly closed an $18m Series A funding round.
The raise was led by Ten Coves Capital, with additional investment from KCRise Fund III, which participated in late March, according to a report from Start Land News. The capital is intended to support the next stage of the Kansas City-built company’s growth as the ICHRA market continues to mature.
The funds will go towards strengthening the company’s core infrastructure, broadening its payments capabilities beyond medical, and developing tools that allow brokers and employers to grow their operations more efficiently.
The company also plans to deepen its direct carrier and payroll integrations. Significant investment is also being directed towards improving the employee-facing side of the platform, particularly around care navigation and the enrolment experience.
Benefitbay operates as an end-to-end ICHRA deployment platform, offering SOC II Type II certified infrastructure for businesses of all sizes. ICHRA, first made available in January 2020, allows employers to provide employees with a tax-free allowance to purchase a health plan suited to their individual needs, replacing the conventional one-size-fits-all group package.
The platform is designed to allow employers to model, deploy and oversee their ICHRA plans while ensuring employees have the tools and support to select appropriate coverage.
Benefitbay founder and CEO Brandy Thompson said, “Healthcare is incredibly personal and often confusing, so we want to make the enrollment and decision-making process much simpler and more intuitive for people navigating these choices,” Thompson said. “For many of these employees, this is the first time they have ever had real agency over their healthcare decision. We want to make sure they are equipped to use that choice wisely.”
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