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Take Command Announces $25M Growth Investment, Led by Edison Partners, as More Employers Seek Affordable Health Insurance Benefit Options
News provided byTake Command
Sep 19, 2023, 8:00 AM ET
Reinforces Company's Position as Country's Largest Individual Coverage Health Reimbursement Arrangement (ICHRA) Administrator
DALLAS, Sept. 19, 2023 /PRNewswire/ -- Take Command, a Dallas-based SaaS platform and leader in the rapidly growing employer sponsored, personalized health benefits space, announced it secured $25 million in growth stage financing led by growth equity investor Edison Partners, with participation from current investors LiveOak Venture Partners and SJF Ventures.
Take Command is the first and largest company in the U.S. to offer an end-to-end individual coverage health reimbursement arrangements, or ICHRAs, administrative platform and access to an individual health marketplace. ICHRAs are a new alternative to traditional group health insurance. Historically, employees have had to enroll in coverage from prescribed, one-size-fits-all insurance plans, paying for benefits they may not need. ICHRAs instead provide employees with a tax-free stipend they can use to select the plan of their choice and provide employers a way to mitigate or avoid rate increases.
ICHRAs save employers an average of 10-20% in costs, while providing employees with unprecedented choice when picking a plan that is right for them and their family. They are compliant with the Affordable Care Act and their popularity has driven more than 10,000 employers to adopt this new benefits model since its inception in 2020, marking 355% growth. Based on a defined contribution model, the market transformation is often likened to the shift from pension plans to 401(k)s.
Companies of all sizes are offering ICHRAs through Take Command. Many small and medium sized employers are using this HRA model to bolster recruitment and retention in a tight job market and as an onramp to offer benefits for the first time. Large employers, Take Command's fastest growing segment, are leveraging ICHRAs to mitigate annual renewals, improve minimum participation rates, and upgrade from more expensive one-size-fits-all traditional employer sponsored coverage.
"If you look at those growth statistics, it's clear American employers are eager to invest in their employees while providing themselves the opportunity to take back control of how they spend their healthcare dollars," said Jack Hooper, Founder and CEO of Take Command. "Our team is looking forward to partnering with Edison, with its reputation for strong, customized value creation support as Take Command continues to build its capabilities to meet the rising demand for ICHRAs as more companies learn about and adopt them."
Take Command will deploy the investment to further build out an infrastructure that pioneered and continues to shape the future of health benefits. The company will specifically use the new funding to expand its go-to-market strategy, boost payment functionality across its platform, and innovate new marketplace offerings.
"As the first-in-market alternative health insurance solution, Take Command is well positioned to capitalize on ICHRA's meteoric growth," said Edison Partners General Partner Gregg Michaelson, who led the investment and will join the board of directors. "Edison is proud to play a role in helping the company scale into their next phase of growth and further accelerate Take Command's journey to building the leading health benefits technology company."
About Take Command
Take Command is a SaaS platform that helps companies reimburse employees for health insurance. Offering seamless administration for Individual Coverage HRAs (ICHRAs) and Qualified Small Employer HRAs (QSEHRAs), Take Command was the first end to end ICHRA solution on the market, the first to bring a viable partnership model to brokerage firms, the only HRA administrator invited to the White House when ICHRA was announced, the only company to offer in-house, personalized enrollment support for employees, and a founder of the HRA Council.
With clients in all 50 states and clients ranging from 3 to 3,000 employees, Take Command has helped more than 5,000 companies take command of their health benefits. Take Command is proud to be named a best place to work by Modern Healthcare, Builtin, and Dallas Business Journal, and has won countless awards in the startup and innovation sectors. For electronic press kit, please visit this link.
Name: Amy Skinner
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