Healthcare platform Thatch reaches $1B valuation as employer costs rise
Thatch, a health benefits platform that helps employers manage healthcare costs while expanding plan options for employees, has reached a $1 billion valuation after raising $108 million from existing investors. The funding round was led by firms including Andreessen Horowitz and General Catalyst. This follows a $40 million Series B in 2023 at a much lower valuation of $410 million. The company's rapid growth is attributed to rising employer healthcare costs, which are projected to increase over 8% in 2027 — the largest rise since 2003. Additionally, employees increasingly seek access to newer treatments like GLP-1 drugs (e.g., Ozempic and Wegovy), often excluded from traditional plans. Thatch uses a model called ICHRA (now CHOICE) that allows employers to fund individual health insurance for workers rather than offering company-wide coverage. Employees can choose their own plan using pre-tax funds, with AI-driven recommendations tailored to their needs.
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Topics: AI employer benefits healthcare startups