Dallas-primarily based overall health added benefits technologies firm, Take Command, has secured a $25 million development investment that will be applied to improve its on-line platform. The platform enables businesses to supply employer-sponsored overall health insurance coverage extra simply. The funding was supplied by private equity firm Edison Partners, as properly as current investors LiveOak Venture Partners and SJF Ventures. Take Command’s platform permits employers to give tax-totally free payments, recognized as overall health reimbursement arrangements (HRAs), to their staff. The staff can then use the funds to buy an insurance coverage program of their picking out below the Very affordable Care Act. They have the flexibility to pick a program primarily based on aspects such as network of providers, co-pays, and preferred solutions like telemedicine. Open enrollment on Healthcare.gov will start on November 1st.
HRAs serve as an option to conventional employer-sponsored group overall health insurance coverage and supply a number of added benefits for employers. Take Command asserts that HRAs aid mitigate price hikes and lower employee overall health insurance coverage fees. Due to the fact 2020, more than ten,000 employers nationwide have adopted HRAs, marking a 64% boost from final year.
Take Command Health’s founder and CEO, Jack Hooper, highlighted the expanding interest in investing in staff even though regaining manage more than healthcare spending. The business claims that employers usually save ten% to 20% in insurance coverage fees by using HRAs.
The $25 million investment will be applied to increase payment functionality on Take Command’s platform and introduce new offerings. The business also plans to expand its workforce from about 120 staff and 50 seasonal contractors to about 200. Take Command’s annual recurring income at present stands at about $18 million. Previously, the firm raised $21.two million from seed and early-stage investors.
In a connected improvement, Take Command received $12 million in funding earlier to expand its platform for employer-sponsored overall health insurance coverage.