Thatch, an all-in-one platform simplifying the process of employee healthcare benefit allocation, has secured $38 million in a series A funding round to fuel growth and advance its platform.
The company’s latest round was backed by General Catalyst, Index Ventures, and Andreessen Horowitz (a16z), boosting the cumulative capital raised by the company since its founding in 2021 by Chris Ellis and Adam Stevenson.
Thatch focuses on revolutionizing insurance benefits allocation for employees through ICHRA (individual coverage health reimbursement arrangements), allowing employees to choose their insurance plans based on their needs.
Since it first became available in 2020, the ICHRA insurance option allows employers to provide tax-free health insurance benefits to employees, allowing them to opt for their preferred insurance plans.
Simplifying Benefits Allocations for Employees
That offers self-service to employers allowing employers to allocate employee healthcare insurance benefits according to their budget. To get started, employers sign up for the platform, link bank accounts, authenticate into their payroll system, and allocate benefits and budget limits.
With the new tool, employers can seamlessly allocate health benefits to their employees without contacting brokers, selecting plans, and handling the issues arising from the process, a challenge presented by traditional systems.
With the health insurance benefits allocated, employers can choose the plans that match their needs and preferences. If the employees spend below the budget limit set for them by their employers, they receive a Thatch Visa debit card to pay for other health-related expenses, such as prescriptions and therapy.