Thatch

What Is Thatch?

Thatch is a health benefits platform that uses an Individual Coverage Health Reimbursement Arrangement (ICHRA) to give employees more control over their health coverage. It allows employers to set individual health budgets that can be used by employees for eligible insurance premiums and medical expenses. The platform lets employees search for available plans using doctors, hospitals, locations, and prescriptions as criteria. It helps companies that want structured benefit contributions without placing every employee on the same group health plan.

What Is Thatch Best For?

The platform is renowned for its Ask Thatch tool, which provides real-time answers about employee health benefits in dozens of languages. Its multilingual support reduces language barriers when employees need to understand their coverage or benefit allowances. For a distributed workforce, employees in different countries can use Ask Thatch to resolve benefit-related questions without relying on translated HR materials.

How Much Does Thatch Cost?

The platform's starting price is $70/month for one employee. This plan, known as Standard, includes various features, such as seamless payroll integration and AI-driven insights. Additional Thatch pricing tiers are as follows:

• Custom – Custom pricing with a minimum cost of $2400/year for 10 enrolled employees

Besides the fixed subscription charges, users should also account for additional prices to consider the total cost of ownership. It includes, but is not limited to, the following:

• Implementation And Setup: Approximately $500–$5,000, depending on the size of the workforce and complexity of setup
• Employee Data Migration: Typically costs around $1,000–$7,500, based on the volume of data to be migrated
• Payroll Setup And Configuration: Budget roughly $500–$3,000 for payroll setup and initial compliance setup
• Employee Onboarding And Training: Generally costs $500–$5,000 for administrator training and workforce requirements
• Custom Reporting And Workflows: Estimated at $1,000–$7,500 where tailored HR reports or approval workflows are required

Disclaimer: The pricing is subject to change.

Thatch Integrations

The platform integrates with multiple systems, such as:

• Gusto HR software
• Paychex Flex
• Justworks
• ADP
• Warp

How Does Thatch Work?

Here's how you can get started with the software after completing the onboarding:

• Set the health budget for each employee based on their age, location, and dependents
• Review the available budget details and affordability information for employees within the administrative view
• Invite employees to access their individual Thatch portals and begin reviewing available benefit options
• Guide employees to the plan-selection area, where they can filter insurance options using their doctors, hospitals, or prescriptions
• Monitor employee benefit selections and the remaining health budget through the platform
• Review eligible expenses employees can use their remaining budget toward, including prescriptions and therapy
• Manage employee status changes and payroll deductions from the administrative side of the platform

Who Is Thatch For?

Thatch software is used in various industries and sectors, including:

• Healthcare
• Human resources
• Finance

Thatch Use Cases

Based on Thatch’s existing capabilities, we have analyzed and identified several situations where the platform may fit specific health benefits requirements:

Employers Replacing One-Plan-Fits-All Health Coverage

Traditional group health plans make it difficult to help employees with different healthcare needs. Additionally, there are several employers who want to control their monthly benefits budget without choosing one insurance plan for the entire workforce. Thatch software provides Individual Coverage Health Reimbursement Arrangement (ICHRA) to allow employers to set a defined health budget while letting employees select their own individual coverage.

Distributed Workforces With Location-Based Benefit Budgets

Thatch is useful for companies whose employees live throughout different locations and face varying insurance costs. Instead of applying one allowance for the entire workforce, the platform's benefits customization capability lets employers assign health budgets according to different employee circumstances, such as location or family status. It allows HR teams to account for geographic differences when setting health benefit contributions.

Employees Who Need Coverage Around Existing Doctors

It is challenging to find a health plan that includes a preferred doctor when employees are limited to employer-selected group coverage. The system is helpful in situations where employees need to evaluate individual plans against their existing healthcare arrangements. Its plan marketplace lets employees search coverage using their doctors, hospitals, or prescriptions to let them analyze options before enrolling.

Companies Offering Benefits To Mixed Employee Groups

Several workforces that contain remote employees and part-time staff require different benefit arrangements. The platform's health budget management allows employers to organize employees into classes and assign different health budgets to each group. It is specifically useful for companies that need to distinguish benefit contributions by employment status or location without applying the same allowance to everyone.

Employers Giving Employees More Control Over Unused Health Budgets

Some employees have healthcare costs that vary significantly after their insurance premium is covered. The software fits employers that want remaining benefit funds to cover other eligible healthcare expenses. Depending on the employer's plan, the system allows employees to use their available balance for various expenses, including copays or prescriptions, to give the health budget a broader role beyond insurance premiums.

Is Thatch Right For You?

Thatch might be a suitable solution for employers looking for an ICHRA platform with employee plan choice and defined health budgets. It follows HIPAA compliance requirements to secure user data. Trusted by various clients, including Five Guys and Jersey Mike's Subs, the platform is capable of meeting the needs of growing organizations.

In the last few years, the employer health benefits market has seen greater interest in individual coverage arrangements as rising premiums encourage companies to consider alternatives to traditional group plans. Thatch is keeping pace with this trend through its ICHRA-focused platform, although the platform focuses on individual coverage rather than offering a wide range of benefit models found across the wider market.

Still unsure about investing in the Thatch software? Contact us at (661) 384-7070 for further guidance.