Star Benefits Group Llc

What Star Benefits Group Llc does

Star Benefits Group LLC is a Minneapolis-based, privately held insurance organization founded in 2021 that delivers level-funded self-insured health plans, an integrated hire-to-retire HRIS technology platform, and partner enablement services targeted at the underserved small employer market (typically 2-50 or 2-100 employees). The company addresses a structural gap: small groups have historically been forced into fully-insured products designed for large enterprises, producing rising premium burdens and limited flexibility. Star Benefits is purpose-built for this segment, combining census-based predictive underwriting, next-generation reference-based pricing, specialty drug management, medical management, and a return-of-unused-funds mechanic that aligns carrier and employer incentives.

The company's technology stack combines an underwriting and cost-containment engine (predictive analytics on census data, claims repricing, Rx cost management) with an HRIS platform covering digital onboarding, team management, time tracking and PTO, automated payroll with custom pay cycles and direct deposit, benefits compliance, carrier connectivity, and automated tax filing. Underwriting risk is supported by a partnership stack spanning reinsurance (Breckpoint Insurance Company), managing general underwriters and captive arrangements, claims repricing partners, third-party administrators, and program managers. Technology partners include Kenz, CieloStar, Degrees Health, MultiPlan (network solutions), and Welldyne (pharmacy benefit management).

Star Benefits makes money primarily through recurring subscription and premium mechanics: employers pay a set monthly premium into a reserve claims account, with revenue derived from the spread between premiums collected and claims paid plus administrative fees, complemented by HRIS platform fees bundled with health plan offerings. Distribution is 100% channel-led — the company does not sell directly to employers but rather enables insurance brokers, general agents, and third-party administrators to quote, sell, and service small group clients with census analysis support, sales and marketing resources, and consultant-level expertise. The company is founder-owned with no disclosed institutional backing, operates exclusively in the United States, and maintains an 11-50 person headcount.

Name

Star Benefits Group Llc

Legal name

Star Benefits Group LLC

Website

https://star-benefits.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

11–50 employees

Short description

Star Benefits Group LLC is a Minneapolis-based insurance firm that delivers level-funded self-insured health plans, an integrated HRIS platform, and channel enablement services to small employers (2-50 or 2-100 employees) exclusively through insurance brokers, general agents, and third-party administrators across the United States.

Ownership category

akta.pro rank

Product category

Small Group Health Insurance

NAICS

Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292), Health and Welfare Funds (52512)

SIC

Hospital & Medical Service Plans (6324), Accident & Health Insurance (6321), Insurance Agents, Brokers & Service (6411)

akta.pro primary industry

Level-Funded Group Health Plans (FSAIAFAC)

akta.pro secondary industries

Self-Funded (ERISA) Employer Plans (HLAEAAAC), Benefits Administration (BPACAPAC), Eligibility, Enrollment & Benefits Administration (HLAEALAH), Benefits Administration & Enrollment Support (BPAAAIAB)

Keywords

• Level-funded health plans
• Small group benefits
• HRIS technology
• Self-funded insurance
• Benefits administration

Headquarters

HQ city

Minneapolis

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Others

Revenue model

1. Level-Funded Health Plan Premiums: Employers pay a set premium into a reserve claims account for self-funded health coverage. Unused funds may be returned at end of period. Revenue derived from the difference between premiums collected and claims paid, plus administrative fees.
2. HRIS Technology Services: Comprehensive hire-to-retire HR platform offered as part of integrated benefits solution for small groups. Revenue from technology platform fees integrated with health plan offerings.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Star Benefits Group provides level-funded (self-insured) health plans purpose-built for small businesses, paired with an integrated hire-to-retire HRIS technology platform. The health plans feature census-based underwriting, reference-based pricing, specialty drug management, and medical management, with unused claim funds returned to employers at year end. The HRIS covers digital onboarding, payroll, time tracking, PTO, benefits compliance, and tax filing. Products and partner-enabled support are delivered to the small group market through insurance brokers, general agents, and third-party administrators (TPAs).

Product overview

Star Benefits offers a unified platform combining Level-funded Health Plans with integrated HR Technology. Level-funded Health Plans provide self-insured benefits with predictive underwriting, reference-based pricing, and Rx management, while HR Technology delivers a 'hire-to-retire' platform covering onboarding, payroll, time tracking, and benefits compliance. Both products are supported by Services & Support including quoting assistance and go-to-market consulting, enabling small businesses and their broker partners to reduce costs and scale efficiently.

Differentiator

Problem solved

Functional benefit

Products and services

• Level-Funded Health Plans Self-insured health benefit plans specifically designed for small businesses. Employers pay a set monthly premium into a reserve claims account; unused funds are returned to the employer at the end of the period. Features include census-based underwriting using predictive data analytics, next-generation reference-based pricing for claims cost containment, specialty drug management, and medical management programs. Delivered to small groups via brokers, general agents, and TPAs.
• HR Technology (Hire-to-Retire HRIS Platform) Comprehensive hire-to-retire HRIS platform covering digital onboarding, team management with time tracking and PTO, automated payroll processing with custom pay cycles and direct deposit, benefits compliance, carrier connectivity, and automated tax filing. Bundled with health plan offering for small group employers.
• Services & Support Hands-on quoting and census support, sales and marketing resources, and consultant-level go-to-market expertise provided to broker, GA, and TPA partners serving the small group market.

Quantifiable outcome

• Upwards of 20% monthly savings for employers
• +3 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Eleven partnerships are on record, tiered core and supporting.

• Breckpoint Insurance CompanycoreStrategic or Co-development PartnerLeading partnership with Breckpoint Insurance Company as part of the level-funded plan structure. Provides reinsurance protection and backing for the self-insured health plans offered to small groups.
• World-class ReinsurerscoreStrategic or Co-development PartnerPartnership with leading reinsurers to provide financial protection and risk management for the level-funded health plan offerings, enabling small groups to access self-funding benefits with mitigated risk.
• MGU & Captive PartnerscoreStrategic or Co-development PartnerPartnership with managing general underwriters and captive insurance arrangements toorchestrate comprehensive small group health coverage with built-in cost containment.
• Claims Repricing PartnerscoreTechnology or IntegrationIndustry-leading partnerships for claims repricing using reference-based pricing to drive down the cost of claims through data and quality-driven cost containment solutions.
• TPA PartnerscoreStrategic or Co-development PartnerThird-party administrator partnerships to provide claims administration, member services, and backend processing for the level-funded health plans offered to small groups.
• Program Management PartnerssupportingImplementation/ SI/ Consulting PartnerProgram management partners provide oversight and coordination of the various components of the Star Benefits solution, ensuring seamless delivery of integrated health and HRIS services.
• KenzsupportingTechnology or IntegrationTechnology partner visible in best-in-class partners logo section on website
• CieloStarsupportingTechnology or IntegrationTechnology partner visible in best-in-class partners logo section on website
• Degrees HealthsupportingTechnology or IntegrationTechnology partner visible in best-in-class partners logo section on website
• MultiPlansupportingTechnology or IntegrationHealthcare cost management and network solutions partner visible in best-in-class partners logo section on website
• WelldynesupportingTechnology or IntegrationPharmacy benefit management partner visible in best-in-class partners logo section on website

Scale indicators4 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Centivo: Centivo offers level-funded and self-funded health plans specifically aimed at small and mid-sized employers, combining cost-containment features with integrated primary care — directly comparable to Star Benefits' small-group level-funded positioning.
• Sana Benefits: Sana provides small-business health plans with self-funded/level-funded structures and integrated benefits technology, competing for the same small employer and broker audience as Star Benefits.
• Friday Health Plans: Friday focuses on affordable health plans for small businesses and individuals, often using level-funded structures, making it a comparable competitor in the small-group benefits market.
• Gravie: Gravie is a level-funded health benefits marketplace built for small employers and brokers, using reference-based pricing and cost containment tools — a close direct competitor in the same small-group level-funded niche.

Emerging players

• Vitable Health: Vitable offers employer health benefits aimed at small businesses, with primary-care-anchored plans — overlapping with Star Benefits' small-employer focus while emphasizing a different cost-management mechanism.
• Thatch: Thatch enables small employers and freelancers to offer level-funded health benefits via ICHRA arrangements, intersecting with Star Benefits' small-group distribution model through a different tax/regulatory mechanism.

Others

• Welldyne: Welldyne is Star Benefits' PBM partner and a pharmacy benefit manager serving employer-sponsored and level-funded health plans — an ecosystem participant with overlapping customer base.
• MultiPlan: MultiPlan is a Star Benefits technology partner providing reference-based pricing and network solutions, but more broadly is a cost-containment and PPO network provider widely used by level-funded plan administrators.

Broad incumbents

• Breckpoint Insurance Company: Breckpoint is a core Star Benefits partner and a small-group-focused carrier with level-funded capabilities; as an established carrier it represents the broader incumbent space Star Benefits competes against.
• UnitedHealthcare (Small Business): UnitedHealthcare's small-business division dominates the fully-insured small-group market that Star Benefits targets as 'underserved,' making it the primary incumbent being displaced.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/star-benefits

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Star Benefits Group Llc