Founded in 2021 by CEO Chris Ellis and former Stripe executive Adam Stevenson, the company offers an alternative to conventional, one-size-fits-all health plans. By utilizing the Individual Coverage Health Reimbursement Arrangement (ICHRA) model, Thatch allows employers to set fixed health budgets for staff. Employees then select their own coverage from a marketplace of dozens of dental, vision, and health plans, using pre-tax funds to pay for premiums.
In section Startups & Technology
Thatch hits unicorn status as healthcare costs drive ICHRA adoption
With employer healthcare premiums projected to climb 8% by 2027, Thatch has secured $108 million in new funding, pushing the platform’s valuation to $1 billion. The startup, which bypasses traditional group insurance for individual coverage models, has seen its annual recurring revenue grow sevenfold in just under 17 months.
This shift away from traditional carrier negotiations provides a buffer against rising insurance costs. Workers benefit from greater plan portability and the ability to apply funds toward treatments often excluded by corporate plans, such as GLP-1 weight-loss medications. While the platform employs AI to suggest tailored options, its growth is primarily fueled by the economic necessity of containing rising medical expenses. As companies look to offload the burden of annual insurance negotiations, Thatch faces competition from firms like Take Command and Zorro, all vying to capture a share of the evolving benefits market.
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