Tango Health Achieves 800% Annual Recurring Revenue Growth in 2012 as Demand for Health Savings Accounts Increases
Tango adds 3 more top 10 HSA financial institutions as channel partners; closes funding round from industry veterans and company management
Austin, TX, January 15, 2013 -Tango Health, the premier provider of Health Savings Account (HSA) management software and services, today announced that it grew annual recurring revenue over 800% in the 2012 calendar year. Demand for the company’s software and services continues to climb as more companies are adopting consumer directed health plans (CDH) to reduce health benefit costs while providing employees with quality health care coverage. As a result, Tango renewed 100% of its customers for the 2013 calendar year.
“Tango is growing quickly because our solution addresses a key pain point for employee benefit professionals: driving education and adoption of consumer-directed plans and HSAs. The increased participation we enable leads to tax savings, lower health benefit costs, and higher satisfaction for both employees and companies,” said Duncan Van Dusen, Co-Founder and CEO of Tango Health. “In 2012, we published metrics from several organizations who have received significant hard-dollar and employee satisfaction benefits from Tango. These employers range from multi-billion dollar corporations to mid-sized businesses in a variety of industries to educational institutions. We will continue to drive aggressive top-line growth through customer acquisition and broadening our partner base.”
In 2012, Tango also added three new financial institutions to its partner program, and is now integrated with 5 of the Top 10 HSA custodians in the country who together hold more than 2.5 million HSAs, approximately 33% of the total market. Tango Health’s flagship HSA solution helps these financial institutions deliver a better HSA which in-turn helps employers offer employees a better consumer directed health plan resulting in a greater return on investment (ROI). Tango is the only solution in the market serving the needs of employers’ entire employee population; ensuring employers get the maximum engagement, satisfaction, compliance and tax benefit for themselves and their employees.
Tango Health clients benefit from an average 40% higher HSA adoption, higher HSA open rates, seamless IRS compliance, ease of administration, and client payroll contribution dollars that are two times the industry average resulting in over $200,000 in savings per 1,000 employees per year.
“We pride ourselves in offering our employees the best products and technology in the marketplace. For Insperity, the HSA is not just about opening a bank account and being able to draw on the funds; this is a gateway for employees to become better consumers of health care. Whether depositing funds for their short-term needs or leveraging long-term retirement benefits, the HSA helps employees gain control of their overall health care needs,” said Richard Rawson, President of Insperity, a leading provider of human resources and business performance solutions for America’s best businesses. “We wouldn’t align ourselves with just any company, we needed a real specialist like Tango to help drive this message and provide premium tools and premium service.”
In addition, Tango announced that it has closed a $1 million follow-on round to its Series B funding from industry veterans and company management. The additional funds will be used to drive continued growth by adding resources in sales, marketing and customer service.
“Tango has a unique solution in a high growth market and the industry is taking notice,” said Brian R. Smith, Managing Director at S3 Ventures. “We believe their growth will continue to accelerate given the robust CDH market and strength of their value proposition that is in high demand from employees, employers and partners alike.”
About Tango Health
Tango Health helps reduce the total cost of health benefits for employers and employees by maximizing the performance of consumer directed health plans. Employers that are focused on containing or reducing their health care costs have come to rely on Tango because its industry leading management software and services slash the total cost of health benefits through dramatically increased HDHP participation as well as FICA Tax savings. To find out more about Tango HSA, visit www.tangohealth.com or call 855-468-2646.