Stack

Summary

Alex Frommeyer, co-founder of Beam Benefits, has launched a new startup in Columbus called Stack, which has secured $21 million in seed funding. Stack aims to modernize how employers offer health insurance by utilizing Individual Coverage Health Reimbursement Arrangements (ICHRAs), a 2020 initiative that allows employers to set insurance budgets and reimburse employees for their healthcare spending. The startup targets the rising cost of employee healthcare, which has climbed for five consecutive years, increasing by around $400 over the last year alone. While the concept isn't entirely new, the challenge lies in helping businesses navigate the complexities of ICHRAs. Frommeyer plans to test the model in Central Ohio, citing Columbus not only as a solid test market but also as a city with a strong entrepreneurial environment where he can build and grow his company in person. This funding is a positive signal amid broader challenges for Ohio-based startups, which have recently faced difficulties securing investment as more funding shifts towards AI and coastal ventures. Frommeyer optimistically declares, 'Columbus startups are back.'