US health benefits platform TakeCommand Health has closed a $12m (£8.6m) Series A funding round led by LiveOak Venture Partners and SJF Ventures.
The tech start-up says it will use the additional funding to grow its team, launch new products and features, including a new payments solution, and enhance design support and account management.
Commenting on the new funding, TakeCommand Health CEO Jack Hooper said: “We believe the reimbursement model of insurance is key to helping employers control costs and expand coverage for employees.
“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.”
Launched due to the US’s Affordable Care Act, TakeCommand Health is seeking to accelerate the adoption of the reimbursement model of health insurance which uses billing systems where healthcare organisations are paid for the services they provide to patients, whether by insurance payers or patients themselves.
Instead of a traditional one-size-fits-all group plan, the model allows employers to provide a tax-free fixed regular sum for employees to buy qualified Affordable Care Act coverage tailored to their unique needs.