BeneStream will capitalize on that understanding, offering a subscription service to employers that will analyze the pay of every employee, and then offer to enroll low-income candidates into Medicaid. Geyerhahn predicts that between 20% and 40% of employees at companies in industries like hospitality and home healthcare will qualify for Medicaid enrollment. BeneStream will charge subscribers a one-time $40 registration fee and a $200 annual maintenance fee for each employee.
Investors have shown an interest in companies that are looking to capitalize on the surge in newly insured Americans. Last week, Hudson Square-based Truveris, a digital health platform providing management tools to sponsors of prescription benefit plans, announced it had raised $12.8 million in Series C funding.
By identifying lower-income staff eligible for Medicaid and then guiding them through the obtuse enrollment process at a reasonable cost, BeneStream is charging relative pennies on the dollar to help companies comply with new ACA guidelines and avoid thousands of dollars in possible penalties. Companies can't coerce employees to opt into Medicaid, but they can nudge employees in that direction by offering a plan that complies with the law's minimum coverage requirements but is less generous than the government's offering.
"It's both good policy and good business," said Andy Stern, a BeneStream board member and a former president of the Service Employees International Union, which represents primarily healthcare workers but also government and building services workers. With a six-month window to comply with the mandate, BeneStream's client roster should swell quickly, he said.
Both Stern and Geyerhahn were major proponents of the ACA before its adoption. Geyerhahn played a role in New York state as an adviser to Gov. Andrew Cuomo and as a member of his Health Benefit Exchange Regional Advisory Committee. Stern advised President Barack Obama on healthcare reform.
"Health startup cashes in on Obamacare loophole" originally appeared on the website of Crain's New York Business.