Prime Highlights:
- The San Francisco-based startup firm Thatch has secured Series B funding of $40 million, and the lead investor in the funding is Index Ventures.
- Thatch is a web-based platform through which companies can provide Individual Coverage Health Reimbursement Arrangements (ICHRA) to their employees, giving the workers more options when they have to decide how to select and administer health insurance coverage for themselves.
Key Facts:
- Thatch’s platform allows employees to use their ICHRA dollars on other types of health coverages, such as dental, medical, or vision.
- Unused balances can be used to contribute towards additional treatment costs, and employees can also change carriers if they are not satisfied.
Key Background:
Thatch, established in October 2021, aims to shake the health insurance industry by putting healthcare decision-making into more employees’ hands. The Series B of $40 million led by Index Ventures and joined by earlier investors Andreessen Horowitz, General Catalyst, SemperVirens, PeopleTech Partners, The General Partnership, and new one ADP Ventures places Thatch’s equity funding to date at $84.5 million.
Thatch’s policy is founded on Individual Coverage Health Reimbursement Arrangement (ICHRA), an insurance product class after 2020. While current HRAs reimburse medical out-of-pocket expenses, ICHRAs allow employers to contribute individual medical premium expenditures. Under Thatch’s policy, workers are given a specific amount of money on which they choose best health schemes to themselves that can be from medical to eye and dental care. Any excess is available for further treatment costs. Most significantly, if an employee does not approve of the current insurance carrier, he or she can switch carriers.
The platform’s adaptability is combined with ICHRA employee classes so that companies can customize health coverage by incorporating working hours or sites. It is an altered solution whereby employers can offer altered health plan alternatives to different classes of employees. Thatch has also partnered with QuickBooks, putting its ICHRA services on the QuickBooks platform. It is simple to set up ICHRA accounts for employees for companies on QuickBooks, and it is simple to manage benefits.
With this huge investment, Thatch will build on its innovative approach to employee health care benefits, giving employers and employees more choice and flexibility in health care.
