Thatch provides a platform that enables employers to shift from traditional group health insurance to a consumer-directed model. Under this system, companies set a specific health benefits budget, allowing employees to select individual coverage and use remaining funds for eligible healthcare costs.
The company's infrastructure integrates with major payroll providers, benefits platforms, and health insurance carriers. This allows businesses to transition to the new model without needing to overhaul their existing benefits systems.
Thatch has experienced significant growth, with revenue increasing nearly sevenfold over the past year. The number of employers utilizing the platform has now exceeded 5,000.
In April 2025, the company secured $40 million in a Series B funding round. The latest Series C round included participation from both existing and new investors, contributing to the company reaching a valuation of $1 billion.
According to CEO Chris Ellis, members typically have an average of $250 remaining in their accounts each month. This balance can be applied toward healthcare expenses that are not covered by standard insurance plans.
