Thatch (company)

Thatch Health, Inc. is an American technology company. It offers health benefits administration software to U.S. employers. The company is headquartered in San Francisco, with additional offices in New York City and Austin, TX.

Thatch facilitates benefits via Individual Coverage Health Reimbursement Arrangements (ICHRA). Employers using Thatch provide benefits to their employees by providing a tax-free allowance, which employees use to purchase health insurance and pay for other qualifying medical expenses. As of May 2026, around 4,000 businesses use Thatch to provide health benefits to their employees.

Founding

Thatch was founded in October 2021 by Chris Ellis and Adam Stevenson. Ellis previously studied as a cancer researcher at MIT and founded the sales team at Sophia Genetics. Stevenson spent 4 years at Humana before joining Stripe as an early employee and engineering leader. Ellis and Stevenson both lost parents to cancer and initially conceived of Thatch as a service to help cancer patients find clinical trials. In early conversations with cancer patients they learned they were largely dissatisfied with their insurance coverage and the costs associated with obtaining care. They pivoted Thatch early in the company's history to focus on health benefits administration.

Thatch launched in August 2023.

Product

Thatch provides health benefits to employees using a tax-free allowance configured by their employer. Employees select health, dental, and vision insurance on Thatch, and use remaining funds to pay for qualified medical expenses like therapy, healthcare copays, or preventative diagnostics.

Employees using Thatch receive a debit card to pay for expenses. The company partners with healthcare services like Function Health and Hims and Hers to facilitate discounted access to medical treatments.

Expansion and growth

Thatch announced a $6-million Seed Round led by Andreessen Horowitz and Google Ventures in February 2023.

In September, 2024, Thatch announced a $38-million Series A financing led by Index Ventures and General Catalyst, with participation from Andreessen Horowitz, Avid Ventures, The General Partnership, and others.

In April 2025, the company announced a $40-million Series B financing round led by Index Ventures. ADP Ventures and all other major investors also participated in the funding round.

In December 2025, ADP and Thatch announced a partnership that embeds Thatch within the ADP Run small business platform.