Thatch Reaches $1 Billion Valuation with a Focus on Affordable Healthcare
Thatch, a healthcare startup focused on helping employers offer individual health plan marketplaces to employees, has reached a $1 billion valuation after raising $108 million. This marks a significant increase from its previous valuation of $410 million just over 17 months ago. The company's annual recurring revenue grew roughly sevenfold under CEO and co-founder Chris Ellis. Thatch uses the CHOICE (formerly ICHRA) model, allowing employers to set fixed budgets for each employee rather than negotiating a single plan. Employees can then choose from various health plans and retain unused funds for other healthcare expenses like GLP-1 drugs such as Ozempic. Rising employer healthcare costs—projected to increase over 8% in 2027—and employees' demand for more flexible coverage are key drivers of Thatch's growth. Ellis noted that while cost concerns initially drew attention, users have come to appreciate the efficiency and flexibility this model provides.
Topics: employer_benefits fintech healthcare valuation