Thatch Secures $38 Million in Series A Funding to Transform U.S. Healthcare

Thatch, co-founded by Chris Ellis and Adam Stevenson, has announced a pivotal $38 million Series A funding round, led by General Catalyst and Index Ventures. This investment aims to catalyze a strategic transformation of the U.S. healthcare system by decoupling health insurance from employment, thereby enhancing consumer choice and affordability and creating a more flexible and accessible healthcare landscape.

With this funding, Thatch plans to reshape how individuals access healthcare benefits, enabling greater personalization and financial viability. This innovative approach is designed to empower consumers, contributing to a more equitable and sustainable healthcare model.

Currently, most Americans receive health insurance through their employers, often through group plans that adopt a one-size-fits-all approach. This model frequently fails to meet individual needs, leaving employees locked into plans that may not suit them and risking critical coverage when they change jobs. Thatch aims to address these issues by offering a platform where employers can allocate budgets for employees to purchase health insurance that best fits their unique circumstances.

This initiative comes at a crucial time, as many employers are struggling with rising insurance premiums and are looking for ways to meet diverse employee needs. Thatch provides a solution that allows employers greater control over healthcare costs while giving employees the flexibility to choose tailored coverage.

Central to Thatch’s model is the Individual Coverage Health Reimbursement Arrangement (ICHRA), introduced in 2020, which enables employers to provide tax-free funds for personalized health benefits. Thatch utilizes AI-driven tools and fintech infrastructure to simplify this process, making it easier for both employers and employees to explore their options.

Over the past year, Thatch has made impressive strides, partnering with hundreds of employers nationwide. Many of the health plans offered through Thatch not only match but often exceed the quality of traditional group plans while being more cost-effective.

Thatch is dedicated to building a healthcare system where employees can keep their benefits as they transition between jobs, fostering long-term loyalty with health insurers. With a focus on improving quality and accessibility, Thatch aims to move closer to a more equitable healthcare system.

Employers who adopt Thatch can expect to see healthcare cost savings of 20-30%. By empowering individuals to make informed healthcare choices, Thatch envisions a significant shift in how Americans engage with healthcare services.

Thatch invites employers, brokers, and employees interested in joining this transformative movement to collaborate in addressing the pressing healthcare challenges facing society today.