Beam Benefits co-founder raises $21M for health insurance startup Stack
What's the deal? Beam Benefits co-founder Alex Frommeyer has raised $21 million in seed funding for Stack, a Columbus, Ohio startup rethinking how employers provide health insurance. The round was led by national venture firms 8VC and A*, with Ohio-based Heartland VenturesDealroom has a profile for this one. Try Dealroom → and The OHIO Fund participating.
How it works: Stack uses individual coverage health reimbursement arrangements (ICHRAs), introduced in 2020, to help businesses set an insurance amount and reimburse health care spending. Instead of paying $500 monthly per person for group benefits, an employer can offer a $500 monthly health allowance, letting workers choose their own policies. The goal is to avoid steep annual increases in group costs.
Why now? Stack says employee health care prices have risen five years in a row, up around $400 from last year. Employers are bracing for an 11% jump in 2027, the largest in more than 20 years.
Between the lines: ICHRAs aren't a novel idea, but the difficulty lies in understanding the math and market nuances to make them work. "That's where Stack enters the process," Frommeyer told Axios.
What's the endgame? Stack will prove its concept in Central Ohio, working only with companies whose "vast majority" of staff are local before expanding. Frommeyer says Columbus is a strong test market and a place he can "build this company in-person in downtown Columbus, where we're all together in the office."
He built his reputation at Beam Benefits, where he raised $170 million before the company was acquired by Principal Financial GroupDealroom has a profile for this one. Try Dealroom →. Much of the Stack team comes from Beam.
The signal: Ohio startups have struggled to raise as money shifts toward AI and the coasts. Frommeyer sees himself as part of a wave of repeat founders building second and third companies with more experience and connections. "Columbus startups are back," he told Axios.
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