Tango Health Achieves 800% Annual Recurring Revenue Growth in 2012 as Demand for Health Savings Accounts Increases

  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

Business Wire

AUSTIN, Texas -- 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 also 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.comor call855-468-2646.


Tango Health
Jeff Fugitt, 512-653-8295
VP, Marketing
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