Take Command Secures $25M to Expand ICHRAs Coverage

What You Should Know: 

– Take Command, a Dallas-based SaaS platform and employer-sponsored, personalized health benefits space secures $25M in growth stage financing led by 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 end-to-end individual coverage health reimbursement arrangements, or ICHRAs, administrative platforms and access to an individual health marketplace. 

ICHRAs Benefits for Employers & Employees

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 families. 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. 

Market Footprint & Expansion Plans

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 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.