St Petersburg, Florida: David Chitester, CEO of Seedfunders, LLC, announced today that the firm made another investment in a local startup company. He said Seedfunders has committed to invest $375,000 in Benebay, a Tampa healthcare technology company. It is the company’s third investment in the past four months.
Mr. Chitester said “Benebay will solve a big problem for small group employers: how to implement an affordable healthcare insurance plan for their employees. Their technology platform is nearly complete and, with this funding, we will be able to help the company launch into the market later this year. Early discussions with potential clients have been overwhelmingly positive and I am confident that Benebay will play a significant role in solving healthcare insurance issues for small businesses“. Mr. Chitester and Seedfunders partner Tommy Simon will join the Benebay Board of Directors.
As the healthcare insurance industry evolves, and premiums continue to escalate, employers are looking for ways to reduce costs while still maintaining essential healthcare services for their employees. As a result, more companies are considering self-funded plans. According to the Self-Insurance Institute of America, the advantages of a self-insured plan are as follows:
- The employer can customize the plan to meet the specific health care needs of its workforce, as opposed to purchasing a ‘one-size-fits-all’ insurance policy.
- The employer maintains control over the health plan reserves, enabling maximization of interest income – income that would be otherwise generated by an insurance carrier through the investment of premium dollars.
- The employer does not have to pre-pay for coverage, thereby providing for improved cash flow.
- The employer is not subject to conflicting state health insurance regulations/benefit mandates, as self-insured health plans are regulated under federal law (ERISA).
- The employer is not subject to state health insurance premium taxes, which are generally 2-3 percent of the premium’s dollar value.
- The employer is free to contract with the providers or provider network best suited to meet the health care needs of its employees.
Traditionally only large corporations have had the financial capabilities to implement and manage self-funded plans. Benebay, however, will make it easier and more cost effective for small businesses to take advantage of the concept as they seek ways to retain employees and compete with larger firms.
Chandler J. Rapson, Benebay Chairman said “We are thrilled to have Seedfunders as a strategic partner in Benebay, Inc. We also look forward to having some of their key partners join the Board of Directors. Seedfunders not only brings investment acumen but also a breath of healthcare and technology knowledge and experience critical to Benebay’s future growth.”
Seedfunders invests in pre-revenue, scalable technology startups in Florida. Comprised of experienced entrepreneurs, talented financial professionals and seasoned industry executives, Seedfunders provides funding, connections and mentoring for early stage companies. For more Information on Seedfunders, please contact David Chitester at firstname.lastname@example.org or visit the company website at www.seedfunders.co.
Benebay is an innovative point of service healthcare payment solution and self-funded healthcare technology platform targeting the small group health insurance market place. Benebay provides its technology both directly and indirectly to small group employers, Third Party Administrators and Health Plans.