Employer healthcare spending is heading towards a ten% enhance in 2026, but the larger drawback isn’t simply rising prices; it’s the disconnect between what corporations spend and what staff really use. GLP-1 medicines alone now drive over 15% of pharmacy claims at many employers, whereas 77% of huge corporations rank managing these prices as extraordinarily vital. On the identical time, advantages fragmentation has created a paradox the place corporations allocate 30% of complete compensation to advantages packages, but low utilization and administrative complexity forestall staff from accessing this worth. Benepass solves each challenges by unifying spending accounts throughout healthcare, commuter, household care, and wellness packages right into a single card-based platform that works wherever Visa is accepted. Since launching in 2019, the corporate has facilitated over 4.5 million transactions throughout 80+ nations, with income greater than doubling since January 2025 as employers search options to fragmented level options. This funding will develop specialised choices together with low-threshold HSA investing ($125 minimal versus typical $1,000+ necessities) and Specialty Well being Reimbursement Accounts that allow employers outline eligible GLP-1 packages, prohibit spending to permitted retailers, and bundle complementary companies like diet counseling, addressing pharmaceutical price .pressures with out forcing premium will increase throughout whole worker populations.
AlleyWatch sat down with Benepass CEO Jaclyn Chen to study extra in regards to the enterprise, its future plans, latest funding spherical, and far, far more…
Who have been your traders and the way a lot did you increase?
We raised $40M in Collection B funding led by Centana Progress Companions for a present valuation of $195M.
Inform us in regards to the services or products that Benepass provides.
Based in 2019, Benepass is a world advantages capital administration platform that modernizes how employers ship and handle advantages, pre- and post-tax. Powered by a proprietary monetary ledger, Benepass ensures exact and compliant distribution of profit {dollars} throughout native currencies and packages. This consists of administering spending accounts for commuter, healthcare spending, household assist, wellness, skilled improvement, and different companies. Presently, the corporate has processed greater than 4.5 million card transactions and serves over 250 employers worldwide. Benepass can be a Workday Wellness strategic associate for monetary advantages.
What impressed the beginning of Benepass?
We began Benepass as a result of advantages look beneficiant on paper and nonetheless really feel painful to make use of in actual life. I’ve labored at benefits-rich corporations. On my first day at work, I acquired a folder with a bunch of handouts relating to advantages. As work bought busy, I misplaced the folder, and I’m certain I left rather a lot on the desk as a result of redeeming advantages could be a problem. On paper, it was stacked: meals, commuter, reductions, reimbursements, the entire menu.
Each program had completely different guidelines. Typically you bought cash in your paycheck; typically you bought a reduction; typically you bought sure classes; typically you wanted receipts, typically you didn’t.
Over time, most individuals did what I did: they stopped partaking altogether.
Firms spend 30% of complete compensation on advantages. The portion of that wage is fairly transactional. However the portion spent on advantages — that’s the place corporations can exhibit their values and present that they’re taking good care of their workforce. It’s a missed alternative to have all these underutilized advantages.
What actually crystallized it for me was when one thing shifted in my private life. A member of the family handed away instantly, and it actually deeply impacted me. Impulsively — the health club membership low cost, the wholesome snacks, the Uber credit — the issues that I liked as perks appeared grey and not vital. Essentially the most significant sources my firm may have helped me with in that second (bereavement counseling, and even serving to me pay for a $1,500 last-minute flight residence to be with my household) weren’t obtainable.
We’re altering that with Benepass. We’re making it potential for corporations to supply extremely personalised experiences for bodily & psychological wellness, skilled improvement, distant work enablement, household assist, and so many different themes which might be significant for people and worthwhile for corporations.
How is Benepass completely different?
Advantages are dynamic, and the way HR leaders distribute these {dollars} ought to adapt to the wants of their whole workforce. Benepass owns essentially the most customizable spending accounts platform that will help you ship profit {dollars} to your folks. You’ll be able to spend with confidence whereas staff use advantages simply to afford what issues most of their on a regular basis lives.
What market does Benepass goal and the way huge is it?
Employers with HR leaders, Fortune 100 and 500 Employers/
What’s your enterprise mannequin?
Benepass provides a set of pre- and post-tax merchandise to its clients. We cost a per-employee-per-month (PEPM) payment based mostly on the variety of enrolled people, and these charges are usually billed yearly.
How are you getting ready for a possible financial slowdown?
Firms spend 30% of complete compensation on advantages with no indicators of slowing. It’s not about providing extra advantages, it’s enhancing how members can really entry profit {dollars} to spend on their on a regular basis wants (meals, well being care, transportation, little one/elder care, and so forth.)
What components about your enterprise led your traders to put in writing the verify?
Benepass has demonstrated sturdy momentum throughout buyer adoption and platform utilization. The consistency of buyer reward throughout flexibility, its consumer expertise, and a extremely collaborative assist mannequin.
What are the milestones you propose to attain within the subsequent six months?
Increasing extra product choices to assist employers handle rising healthcare prices.
The place do you see the corporate going now over the close to time period?
Increasing to even bigger and extra complicated employers.
What’s your favourite winter vacation spot in and across the metropolis?
Brookfield Place – the mall in Battery Park. As somebody who grew up within the suburbs and actually loves town for all metropolis issues, I’m as shocked as any individual to say “the mall”. But it surely’s a lot greater than a mall! Within the winter, there’s determine skating outdoors; there’s a wonderful meals courtroom that defies my expectation of a meals courtroom; there was even a winter efficiency of the Nutcracker and photographs with Santa this vacation season. It’s the anchor of the neighborhood, and it’s been a godsend with a younger daughter to have the ability to stroll round inside.
You’re seconds away from signing up for the most well liked listing in NYC Tech!
Join at this time
