ROSELAND, N.J., Apr. 3, 2025 ADP Ventures announces a strategic investment in Thatch, a modern ICHRA (Individual Coverage Health Reimbursement Arrangement) platform that enables employers to offer flexible, personalized health benefits tailored to their workforce.
As healthcare costs rise and traditional group plans grow increasingly complex, employers of all sizes face mounting administrative burdens. At the same time, employees are frustrated by limited options, high out of pocket expenses, and lack of control over their coverage.
Thatch reimagines the benefits model by allowing employers to set tax-free monthly healthcare allowances. Employees can use these funds to choose and purchase individual insurance plans that best meet their personal needs. The platform automates payroll deductions, carrier payments, and compliance—streamlining operations for employers while giving employees more autonomy and driving satisfaction with their benefits.
“This investment reinforces ADP’s commitment to delivering innovative, scalable solutions that meet the evolving needs of today’s workforce”, said Usman Khan, SVP and Head of ADP Ventures. “By collaborating with Thatch, we’re looking to strengthen our benefits and payroll ecosystem and helping businesses better support their most important asset: their people.”
We believe small group health plans will continue to play an important role in long-term benefits strategies. As solutions like ICHRA gain traction, innovations from companies like Thatch can help drive greater cost efficiency, simplicity, and choice for employers navigating health benefit options.
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