Ares Benefit Group helps employers compare an Individual Coverage HRA with a group health plan, and then decide whether Thatch is the right administrator for that design. Thatch's official employer documentation states that Thatch administers the ICHRA, also called a CHOICE Arrangement. In that documentation, the employer sets a monthly pre-tax health budget, employees choose individual health plans, and Thatch enrolls employees, coordinates payments and reimbursements, generates compliance reporting, and answers employee questions. Ares is a benefits advisor, not an HRA administrator, and is not appointed by or endorsed by Thatch.
The federal rules stay on ICHRA and ICHRA vs QSEHRA. This page explains Thatch's official role. It is not tax, legal, or insurance advice, and it is not an offer of coverage. We do not repeat Thatch's marketing statistics, testimonials, or response-time claims as Ares's facts, and we do not describe an ICHRA as cheaper than a group plan in the abstract.
Request a proposal or call (813) 540-1299. Our agents are licensed in all 50 states.How Thatch describes the arrangement
Thatch's official employer docs lay out four parts of the work:
- The employer sets an employee health budget — a monthly pre-tax amount the employee can spend on individual health insurance and, if the employer allows it, other eligible health expenses.
- Each employee enrolls in an eligible health plan. Official docs say premiums come first.
- If the employer turns the feature on, employees can use leftover budget for eligible expenses, including by paying with a Thatch Card, submitting a reimbursement, or shopping options Thatch lists in the Thatch Market.
- Thatch supports the team by submitting enrollments, making payments, generating compliance reporting, and answering member questions.
The same documentation includes a simple division of roles: the employer sets the monthly budget and decides which benefits the budget may cover; employees choose individual plans and use the budget toward premiums and eligible expenses; Thatch administers the ICHRA, enrolls employees, and coordinates payments and reimbursements.
Thatch also states that it is the administrator of the ICHRA and the broker of record for the employees' health plans, that it keeps plan documents and compliance up to date, and that it can pay carriers directly and verify that expenses qualify. Employees own their individual (or, where eligible, Medicare) policies. When an employee leaves the company, the individual or Medicare policy is the employee's to keep, change, or discontinue, in Thatch's official wording.
Official docs also state that C corporations, B corporations, S corporations, partnerships, and LLCs are all eligible to offer an ICHRA, with a note that in S corporations, partnerships, and LLCs electing pass-through taxation, the pre-tax health budget can be offered to employees who are not owners (owners defined there as anyone owning more than 2% of the entity). Owner eligibility is a tax question; we will flag it and you should confirm it with your tax advisor. Ares's group health insurance for an LLC page, if you are also comparing a group plan, sits next to this conversation.
How a Thatch ICHRA sits next to other benefits
Thatch's official docs say Thatch can sit alongside other benefits the employer offers. Dental and vision plans can be added on Thatch, with the official condition that employees must first enroll in an eligible health plan before using the health budget toward those plans. Thatch is not an HSA administrator, but official docs say employees can find HSA-compatible plans on Thatch, and they describe how an ICHRA interacts with HSA and health FSA rules. Confirm those interactions on the ICHRA and health FSA pages, and with the HSA or FSA vendor, before you turn features on.
Justworks officially lists Thatch as the integrated partner for CHOICE (formerly ICHRA) reimbursements on its PEO Basic plan. An employer can therefore meet Thatch inside a PEO or as a standalone ICHRA administrator. Those are different employment models, and we will keep them distinct on a proposal.
How Thatch compares with Take Command and PeopleKeep, and with a group plan
Take Command officially administers both ICHRAs and QSEHRAs, including use alongside a group plan. PeopleKeep officially describes administration software with attestation, expense review, and employer reimbursement of verified expenses. Thatch officially emphasizes a set health budget, employee plan choice on its platform, and Thatch's role as ICHRA administrator and broker of record. We do not name a winner. See the ICHRA administrators hub.
A Thatch ICHRA is one way to deliver defined-contribution health benefits. A Florida Blue, UnitedHealthcare, or AvMed group plan, a SHOP policy, or a level-funded plan can each remain the cleaner fit for a given census. We will put the structures that actually apply on one proposal.
What we need for a proposal
We need a census, worksite states, the current plan or HRA, the renewal date, and whether you want a standalone ICHRA or an ICHRA next to a group plan for a permitted class. Start with a proposal so the design is clear, then select administration that fits. Request a proposal or call (813) 540-1299.Frequently asked questions
Is Thatch an insurance carrier?
No. Thatch officially administers the ICHRA and describes itself as broker of record for the employees' individual health plans. Employees own those policies.
What does the employer decide?
In Thatch's official docs, you set the monthly health budget, decide which benefits the budget may cover, and invite and manage your team. Thatch administers the arrangement.
Can leftover budget be used for expenses other than premiums?
Yes, if you turn that feature on. Official docs say premiums come first, and leftover amounts can be used for eligible expenses, including via a Thatch Card or a reimbursement.
Can we use Thatch next to a group medical plan?
An ICHRA can run next to a group plan for another class when the federal rules allow it. Confirm the class design on the ICHRA page and on a proposal.
Does Thatch administer a QSEHRA?
Thatch's official employer documentation describes ICHRA / CHOICE administration. If you need a QSEHRA, we will compare administrators that officially offer that product, including Take Command.
Who should we call first?
Start with a proposal so the design is clear, then select administration that fits.
Ready for a proposal?