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Stack Health closes $21 million seed round for ICHRA benefits
The Columbus startup plans to help employers set insurance amounts and employees compare individual health plans using ICHRAs.
Stack Health, a Columbus, Ohio startup offering an alternative to group health insurance, has closed a $21 million seed round led by 8VC, with participation from A*, Heartland Ventures, The O.H.I.O. Fund, and other investors, Coverager reports.
Founded by Alex Frommeyer, the founder and former CEO of Beam Benefits, Stack Health uses individual coverage health reimbursement arrangements, or ICHRAs, to let businesses set an insurance amount and reimburse employees for eligible health care spending.
The company then supports workers by helping them compare and select individual health plans, rather than relying on traditional group coverage.
The funding comes as Principal previously announced a deal to acquire employee benefits company Beam Benefits in July, according to Coverager.