From Pymnts · PYMNTS · · 1m 10s
Thatch hits $1B on health benefits shift
Thatch’s new funding signals rising demand for benefits budgets that let workers choose their own health coverage.
In brief
Thatch’s new funding signals rising demand for benefits budgets that let workers choose their own health coverage. Thatch is betting employers will replace one-size-fits-all health plans with budgets workers can spend on plans and care. Originally reported by Pymnts.
A $1B benefits bet
Thatch raised $108 million at a $1 billion valuation to expand its health benefits platform.
“Thatch raised $108 million at a $1 billion valuation”
From plans to budgets
Instead of picking one group plan, employers give workers a defined budget. Employees choose individual coverage with tax-free dollars.
“consumer-directed model”
Leftover money stays useful
Workers can use remaining funds for eligible healthcare expenses. Thatch said in 2025 that about half of members had around $250 left each month.
“about $250 left over each month”
Built for employer plumbing
Thatch connects employers and workers to individual coverage, while tying into insurers, payroll providers and benefits platforms.
Growth is accelerating
The company says revenue grew nearly sevenfold in the past year, and more than 5,000 employers now use the platform.
“nearly sevenfold over the past year”
AI may steer care
Investor Jahanvi Sardana said AI could turn the platform into an agent that shops, books and pays for the right care.
“find, book and pay for the right care”
The one thing
Thatch is betting employers will replace one-size-fits-all health plans with budgets workers can spend on plans and care.
