Thatch
Employer health benefits platform giving each employee a funded budget to choose their own insurance.
Founded
2021Employer health benefits platform giving each employee a funded budget to choose their own insurance.
Thatch competes on employee choice and cost predictability at the same time. Because each employee receives a defined budget, an employer's spending is fixed in advance rather than set by the claims experience of the whole group, which insulates a company from a single large claim.
The platform absorbs administration that employers would otherwise handle themselves, including eligibility, compliance, and tax reporting. It also works through brokers and payroll platforms rather than requiring employers to abandon their existing providers, and it publishes live support metrics as a public commitment to service quality.
Source: thatch.com
Individual coverage models put more of the plan-selection burden on employees, who must weigh carriers, provider networks, and prescriptions for themselves. That shift can raise the administrative and support load carried by an employer's human resources function, particularly during open enrollment.
The approach also depends on a functioning individual insurance market in each state, so the range of carriers and plan designs available varies by geography. Employers whose workforces are spread across many states can therefore see an uneven experience from one location to another.
Source: thatch.com
Demand for alternatives to traditional group health plans has grown as premiums continue to rise faster than general inflation. Individual coverage arrangements give an employer a defined cost and give employees a wider set of plan options, which has drawn both newer entrants and established benefits administrators into the category.
Adoption depends on employer willingness to change how benefits are administered and on the breadth of individual insurance options available where their employees live. Growth in broker and payroll distribution channels, where benefits decisions are often made, is likely to shape how quickly the model spreads.
Source: thatch.com
Thatch prices its health benefits platform as a recurring software subscription. The Standard tier costs $230 per month, plus $45 per enrolled employee, plus a $50 per month compliance fee for employers with 1-49 eligible employees.
Employers with 50 or more eligible employees move to a Custom tier. Insurance premiums and platform fees are billed monthly, and the platform connects to payroll systems including Gusto, ADP, and Justworks.
Source: thatch.com