Thatch
Thatch is an ICHRA platform where the employer sets a monthly healthcare budget and employees pick individual medical, dental, and vision plans.
From $45/employee/mo
Bottom line
Thatch is an ICHRA platform where the employer sets a monthly healthcare budget and employees pick individual medical, dental, and vision plans. Standard is $45 per enrolled employee per month plus a $50 monthly compliance fee for teams of 1 to 49.
Stands out for: Leftover budget loads onto a Thatch Card for copays, prescriptions, and other qualified medical expenses, so employees are not filing reimbursement forms after the premium is paid.
Watch out for: Budget the platform fee and the allowance separately. Standard is $45 per enrolled employee plus $50 a month; 50+ employee accounts are custom-priced with a $2,400/year minimum. Thatch Market (plan shopping) is included at no extra platform fee.
Overview
Thatch runs Individual Coverage Health Reimbursement Arrangements. The employer sets a monthly allowance by class, age, and location. Employees choose an individual medical plan, own the policy, and spend leftover budget on qualified medical expenses through a Thatch Card. Thatch submits enrollments, pays carriers, and answers member questions.
Standard pricing is $45 per enrolled employee per month plus a $50 compliance fee for 1 to 49 eligible employees; larger teams get custom pricing with a $2,400/year minimum. A quoting tool applies ACA affordability rules to a census. There is no published free trial.
Who it's for
Best for
- Startups hiring across states that do not want to shop a new group plan each time
- Employers replacing a rising group premium with a fixed ICHRA budget
- Remote-first companies whose people need local individual networks
- HR teams that want enrollment, carrier payments, and compliance reporting handled by the vendor
Not ideal for
- Buyers who want a flat platform fee regardless of enrollment
- Employers that only want a GCHRA on top of a group plan they already like
Key features
ICHRA administration. Employer sets a monthly budget; employees pick their own plans.
Individual plan marketplace. Medical, dental, and vision shopping inside the product.
Thatch Visa card. Unused budget spends on qualified care.
Payroll connection. Syncs contributions with the payroll provider.
Pricing
| Plan | Price | What you get |
|---|---|---|
| Standard | $45/employee/mo + $50/mo | 1 to 49 eligible employees; $50 compliance fee |
| Custom | Custom | 50+ eligible employees; 10 enrolled employee minimum $2,400/year |
Standard covers 1 to 49 eligible employees at $45 per enrolled employee per month plus a $50 monthly compliance fee (the vendor's example is $230/mo for 4 employees). Custom covers 50+ eligible employees, with a 10 enrolled employee minimum of $2,400/year. You pay only for employees who enroll through Thatch. Thatch Market plan shopping is included. The employer still funds the insurance allowance on top of the platform fee. Confirm current terms on the vendor site.
Checked 4 Nov 2026. Vendors change prices without notice.
Is Thatch expensive?
Thatch starts at $45/employee/mo. We list 25 benefits administration tools in total. 0 have a free tier, and those with a public price typically start around $11 a month.
- 16 quote-based
- 0 free tier
- 9 public price
Worked out automatically from every benefits administration listing, so it updates as the directory changes.
Pros and cons
Pros
- No setup fee and no long-term contract on the vendor FAQ
- ICHRA classes can vary by location and age so the budget is not a single national number
- Thatch Card spends leftover allowance without a reimbursement queue
Cons
- $45 per enrolled employee plus a $50 monthly fee is higher than some HRA rate cards
- It is ICHRA, not QSEHRA or a GCHRA supplement
- You still fund the actual insurance allowance on top of the platform fee
What's new at Thatch
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How Thatch compares
See all Thatch alternatives, with what each one does differently and a head to head for every pairing.
| Tool | Free tier | From | MCP | API | Compare |
|---|---|---|---|---|---|
| | – | $45/employee/mo | – | – | |
| | – | $12/employee/mo | – | – | Compare |
| | – | $49/mo | ✓ | ✓ | Compare |
| | – | $8/employee/mo | – | – | Compare |
| | – | Sales-quoted | – | – | Compare |
$12/employee/mo
PeopleKeep publishes GCHRA at $12/employee/mo and ICHRA at $25/employee/mo plus base fees, if you want a printed HRA rate card.
$49/mo MCP API
Gusto is US SMB payroll plus group benefits from $49/mo, not an ICHRA shopping layer.
$8/employee/mo
Justworks is a PEO at $8/employee/mo that sells group benefits through a co-employer, not individual policies.
Sales-quoted
PlanSource is mid-market multi-carrier group benefits administration, quote-led, if you are staying on group plans.
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