Spiraling healthcare costs have become a recurring problem for companies and many of their stakeholders, especially employees. Now, a startup is combining big data, tech, and a deep network of relationships to keep those costs under control.
CorpGov, in partnership with The Palm Beach Hedge Fund Association, a Florida trade association for financial professionals and ultra high net worth investors, hosted a fireside chat Monday, December 7 at 2pm EST with BenAdvance – How Technology is Cutting Costs in the Health Insurance Industry. The virtual event lasted approximately 45 minutes including an audience Q&A.
The fireside chat featured BenAdvance CEO Anthony Milone, who with his fellow executives Rob Siegel, President, and Tim Varone, VP and Chief Revenue Officer, discussed how the company’s proprietary technology platform is meeting unmet needs in health insurance.
The company has major distribution relationships with Berkshire Hathaway along with Weichert realtor networks coming online. BenAdvance also works with leading carriers including Cigna Corporation, Metlife, and Anthem, Inc. In addition, BenefitMall is embracing BenAdvance’s technology platform for supplemental benefits to their 2 million customer base.
BenAdvance is disrupting the health insurance industry by offering plans specifically designed for underserved market segments and allowing large carriers to efficiently cover these underserved markets. This has lowered health insurance costs by utilizing the powerful existing broker distribution system with its strong relationships.
The US Health Insurance market is $1.2 trillion in annual premiums, typically in a cost-sharing model among employers and employees. For many employers, costs are increasing at 15-20% per year, while wages have been growing at less than 3%. These price increases lead employers to pass on price increases to employees and/or reduce quality of coverage to save money.
Many segments of the market have trouble getting coverage because carriers prefer enrolling large corporations, rather than the time-consuming process of handling small groups.
BenAdvance expects to generate $800,000 in revenue for 2020 and looks to ramp that up to $50 million by 2025.
BenAdvance is offering a Sale of Common Equity at a discount of 12.5% off its $13 million valuation. The minimum investment is $25,000, with a maximum total size of $2 million. The closing date is Dec. 31, 2020.
The BenAdvance executives discussed:
- Products: Negotiated contracts with carriers; high-quality products in warehouse
- Technology: Built proprietary technology with full-function, digital access (owned by BenAdvance)
- Relationships: Established relationships with major distribution partners
- Proof of Concept: Proved out solution in the marketplace in key target markets