Employer healthcare spending is heading towards a ten% improve in 2026, but the larger drawback isn’t simply rising prices; it’s the disconnect between what corporations spend and what workers really use. GLP-1 medicines alone now drive over 15% of pharmacy claims at many employers, whereas 77% of enormous corporations rank managing these prices as extraordinarily necessary. On the identical time, advantages fragmentation has created a paradox the place corporations allocate 30% of whole compensation to advantages packages, but low utilization and administrative complexity forestall workers 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+ international locations, 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 permit employers outline eligible GLP-1 packages, prohibit spending to permitted retailers, and bundle complementary providers like diet counseling, addressing pharmaceutical value .pressures with out forcing premium will increase throughout whole worker populations.
AlleyWatch sat down with Benepass CEO Jaclyn Chen to study extra concerning the enterprise, its future plans, latest funding spherical, and far, rather more…
Who had been your traders and the way a lot did you increase?
We raised $40M in Sequence B funding led by Centana Development Companions for a present valuation of $195M.
Inform us concerning 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 help, wellness, skilled growth, and different providers. 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 accomplice 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 obtained a folder with a bunch of handouts relating to advantages. As work bought busy, I misplaced the folder, and I’m positive 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 totally different guidelines. Typically you bought cash in your paycheck; generally you bought a reduction; generally you bought sure classes; generally you wanted receipts, generally you didn’t.
Over time, most individuals did what I did: they stopped participating altogether.
Firms spend 30% of whole 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 caring for their crew. 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 abruptly, and it actually deeply impacted me. Unexpectedly — the fitness center membership low cost, the wholesome snacks, the Uber credit — the issues that I cherished as perks appeared grey and not necessary. Probably the most significant assets 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 growth, distant work enablement, household help, and so many different themes which can be significant for people and worthwhile for corporations.
How is Benepass totally 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 workers use advantages simply to afford what issues most of their on a regular basis lives.
What market does Benepass goal and the way massive is it?
Employers with HR leaders, Fortune 100 and 500 Employers/
What’s what you are promoting mannequin?
Benepass provides a set of pre- and post-tax merchandise to its prospects. 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 whole compensation on advantages with no indicators of slowing. It’s not about providing extra advantages, it’s bettering how members can really entry profit {dollars} to spend on their on a regular basis wants (meals, well being care, transportation, youngster/elder care, and so forth.)
What elements about what you are promoting led your traders to write down the test?
Benepass has demonstrated robust momentum throughout buyer adoption and platform utilization. The consistency of buyer reward throughout flexibility, its person expertise, and a extremely collaborative help 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 particular person to say “the mall”. However it’s a lot greater than a mall! Within the winter, there’s determine skating outdoors; there’s a superb meals courtroom that defies my expectation of a meals courtroom; there was even a winter efficiency of the Nutcracker and images 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.
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