# 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. - Title: Thatch hits $1B on health benefits shift · Pymnts | Shortify - Summary: Thatch’s new funding signals rising demand for benefits budgets that let workers choose their own health coverage. Thatch is betting employers will replace… - Keywords: health insurance, benefits, startups, healthcare, funding, business, finance, Thatch, hits, health, shift, Pymnts - Source: Pymnts — https://pymnts.com/healthcare/2026/thatch-reaches-1b-valuation-as-employers-hand-workers-health-benefits-budgets - Author: PYMNTS - Published: 2026-09-15T22:22:55+00:00 - Read time: 1 min - Topics: health insurance, benefits, startups, healthcare, funding, business, finance ## 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 ## Key takeaway Thatch is betting employers will replace one-size-fits-all health plans with budgets workers can spend on plans and care.