The healthcare landscape has been rapidly evolving, and a significant catalyst for change has been the Individual Coverage Health Reimbursement Arrangements (ICHRA) model. This model, introduced by the Affordable Care Act (ACA), has the potential to transform how employers provide healthcare benefits to their employees. With the recent implementation of ICHRA regulations in 2020, the market is ripe for innovation, and benefitbay™ is at the forefront of this revolution.
Co-Founded by Brandy Burch, a seasoned professional with an MBA in finance and a background in accounting, benefitbay™ aims to improve benefits for individuals and empower them to make informed decisions about their employer-provided benefit dollars. The company’s core product is a Software as a Service (SaaS) platform designed for brokers to efficiently model ICHRA for their employer clients, allowing brokers to quickly determine whether ICHRA is the right fit for their clients.
In addition to its broker-focused SaaS offering, benefitbay™ is committed to streamlining the shopping and payment process for employees. The platform now includes a shopping tool that allows users to compare different plans, enabling them to assess how each plan supports their health needs and determine the associated costs per payroll period. This feature is invaluable, as it equips consumers with the insights they need to make informed decisions regarding healthcare coverage.
Since its launch, benefitbay™ has successfully onboarded employers, secured initial SaaS contracts in 2021, and achieved $1 million in annual recurring revenue (ARR) in 2022. One standout customer success story involves a nursing staffing firm that saved $3.3 million through benefitbay™. By reinvesting these savings into their employees’ health benefits, the company increased its contribution rate to 97%, leading to higher adoption of their benefits program and improved employee retention in the competitive nursing job market.
With a total addressable market (TAM) estimated at $6.32 billion, 11 million employees will be on ICHRA plans by 2025. The platform differentiates itself from competitors through its broker channel strategy, its SaaS offering tailored specifically for brokers, its capability to facilitate ICHRA with Advanced Reimbursement Individual Checking Accounts for employees, and its expertise in unlocking subsidies for eligible employees. Looking ahead, benefitbay™ has ambitious goals for the future. The company plans to further develop its data ingestion capabilities to incorporate prior claims details, enhancing plan selection processes for clients.Furthermore, benefitbay™ aims to continue improving competitive pricing in the Individual and Family Plan (IFP) marketplace by disrupting the traditional group insurance market and transitioning employees to individual plans that better suit their needs and preferences.
‘We plan to capture $80 million dollars of this market’ says CEO Brandy Burch. As the ICHRA model gains traction, carriers such as Aetna and Cigna are expected to re-enter or expand their presence in the individual market. Over 800,000 employers and 11 million employees are projected to participate in an ICHRA in the coming years. This new benefit is anticipated to strengthen the individual market, increase carrier competition, and ultimately result in reduced premiums and more innovative plan designs, benefiting the end consumer.
The team at benefitbay™, driven by passion and commitment, is poised to make a significant impact on the healthcare benefits ecosystem. By addressing the pain points for brokers, employers, and employees, benefitbay™ is not only enhancing the offerings for individuals and their families but also revolutionizing the way healthcare benefits are managed and delivered. The game-changing ICHRA platform, benefitbay™, is set to reshape the future of employer-provided healthcare benefits.
