Funding spotlights surging demand for health reimbursement arrangements and will allow the tech-enabled service startup to quickly ramp up to meet seismic market shifts
DALLAS, TX [April 28, 2021] --Take Command Health, an innovative health benefits platform, announced it has closed a $12 million Series A funding round led by LiveOak Venture Partners and SJF Ventures. The funding enables the HRA administrator to capitalize on tremendous demand by growing its team, launching new products and features, including a new payments solution, and enhancing design support and account management.
"We believe the reimbursement model of insurance is key to helping employers control costs and expand coverage for employees."
“We believe the reimbursement model of insurance is key to helping employers control costs and expand coverage for employees,” shares Jack Hooper, CEO, Take Command Health. “First year results have demonstrated this can be a real win-win. We’re excited to partner with LiveOak Venture Partners and SJF Ventures to propel this new model of health insurance forward.”
Founded out of the Affordable Care Act, Take Command Health is on a mission to accelerate the adoption of the reimbursement model of health insurance. Instead of a traditional one-size-fits-all group plan, the model allows employers to provide a tax-free stipend for employees to buy qualified ACA coverage that fits their unique needs.
The company’s growth correlates with increased interest in the new Individual Coverage HRA (ICHRA) that became available in January 2020. In ICHRA’s first year, Take Command Health saw significantly higher demand than anticipated. Over 70% of Take Command’s small clients are offering health benefits for the first time. “There’s a lot of pent up demand from small employers that needed a more flexible way to provide benefits,” adds Hooper.
The model is also working for larger companies as brokers and benefit consultants come on board. It also presents a solution for offering coverage to employees typically harder to ensure on a group plan, like hourly, part-time, or remote workers. With the industry’s first end-to-end ICHRA solution, Take Command Health was the first to bring a viable ICHRA solution and economic model to traditional brokerage firms.
Conditions continue to align to support the trend. Employers are increasingly frustrated by the one-size-fits all approach and administrative burdens of traditional group insurance, the individual insurance market continues to improve, and HRA administration is becoming progressively easier and mainstream as Take Command Health invests in its platform and features. Carriers are also taking note, offering ICHRA-specific options with zero-dollar deductible plans, free telemedicine, mental health services, and other wellness incentives.
ICHRA’s bipartisan foundation and support position it as a viable solution amidst political uncertainty. The benefits model is bringing new lives to the individual market and stabilizing the ACA marketplace—key campaign initiatives of the current administration.
"Take Command Health was instrumental in drafting the legislation that borne HRAs and has been at the forefront of HRA administration since inception,” noted Mike Marcantonio, Principal with LiveOak Venture Partners. “We’re excited to support this category leading company as they catalyze a paradigm shift in health benefits to a consumer-centric model.”
“A critical factor in building a more sustainable health care ecosystem is empowering employees and employers alike with the tools and support required to control their health care benefits and spending,” remarks Cody Nystrom, Managing Director with SJF Ventures. “Personalization and choice have permeated nearly every other aspect of our society and health care consumption should be included.”
Foley & Lardner LLP served as legal counsel to Take Command in their Series A Financing with a team that was led by Glenn Singleton, a Foley partner who leads the firm’s Transaction Practice Group in Dallas.
About Take Command Health
Take Command Health is a tech-enabled service startup on a mission to create a consumer-centric healthcare system based on awareness, advocacy, and transparency. Take Command Health is a recognized leader in QSEHRA administration for small employers, launched the first-to-market Individual Coverage HRA platform, and is the only HRA administrator to also offer full service, in-house individual enrollment support.
About Jack Hooper, CEO of Take Command Health
Jack Hooper is an HRA advocate and the co-founder and CEO of health tech startup Take Command Health. He is a graduate of the Wharton School of Business and has been featured in The New York Times, BenefitsPro, Dallas Morning News, Bloomberg, Employee Benefit Adviser, and more. His motto? “Health insurance was never meant to be this complicated.”
About LiveOak Venture Partners
LiveOak Venture Partners is a venture capital fund based in Austin, Texas. While almost all of LiveOak's investments begin at the Seed and Series A stages, LiveOak is a full life cycle investor focused on helping create category leading technology and technology-enabled service companies headquartered in Texas. LiveOak Venture Partners has been the lead investor in over 30 exciting high-growth Texas-based companies in the last seven years including CS Disco, Homeward, Digital Pharmacist, OJO Labs, Opcity and TrustRadius.
About SJF Ventures
Founded in 1999, SJF Ventures invests in high-growth companies creating a healthier, smarter, and cleaner future. Representative portfolio companies include ethical food company Vital Farms, clean energy producer Community Energy, sustainable packaging provider TemperPack, health engagement leader mPulse Mobile, and diversity recruiting company Jopwell. SJF Ventures has offices in Durham, New York, San Francisco, and Seattle. For more information, visit www.sjfventures.com.
I wrote this blog because I care about ideas (big and little) that can help fix our healthcare system. I used to work on projects for Kaiser Permanente and the Parkland Health & Hospital System so I've seen the system inside and out. It's so important that consumers keep up with industry shifts and changing health insurance regulations. I'm also Take Command Health's Content Editor and a busy mom. Learn more about me and connect with me on our about us page. Thanks!