Justworks Partners with Thatch on Health Insurance Reimbursement Offering, Giving Small Businesses More Cost Certainty and Employees More Choice
Powered by Thatch, Justworks now offers ICHRA setup, administration, and compliance so employers can focus on their business, not benefits logistics
NEW YORK, New York – July 28, 2026 – Justworks, the operating system for the small business journey, today announced the launch of an individual coverage health reimbursement arrangement (ICHRA) offering in partnership with Thatch, giving businesses a new way to provide health benefits with more employee choice, flexibility, and cost control.
Small business owners face a familiar dilemma: rising healthcare costs demand predictability and control, but increasingly diverse, often multi-location workforces mean no single plan fits everyone. While traditional group plans remain a strong fit for some companies, others may benefit from alternative coverage options based on their size, workforce needs, budget, or eligibility requirements.
Justworks developed its ICHRA integration with Thatch in response to this growing customer demand for more flexible, accessible health benefits — particularly for companies that may not be able to offer traditional group coverage due to eligibility or participation requirements. The new offering gives employers another path to provide health benefits, while giving employees more flexibility to choose coverage that fits their individual needs. New research from Justworks and The Harris Poll found that 89% of small business owners say it is important to offer employees more choice in their health coverage, while 86% of employees say flexibility in choosing their health insurance provider is important when evaluating a job offer, highlighting growing demand for benefits solutions that deliver both flexibility and certainty.
Through Justworks’ ICHRA integration with Thatch, employers can set a monthly, tax-free allowance for eligible employees to purchase individual health insurance plans. Employees can choose coverage that fits their doctors, networks, prescriptions, families, and budgets, while employers maintain more predictable monthly benefits costs. Employers can also allow leftover employee funds to go toward copays, prescriptions, and curated health and wellness products in Thatch Marketplace like therapy (BetterHelp), fitness and sleep trackers (Whoop and Oura), and weight loss support (Ro), to name a few.
The launch also expands Justworks’ broader health insurance offering. With the addition of ICHRA, Justworks now provides small businesses access to all three major health insurance models, small group, large group, and individual plans, giving small businesses more flexibility to choose the approach that best fits their team today and adapt as their needs evolve.
"Small businesses deserve to offer flexible benefits without the operational burden," said David Feinberg, SVP of Risk and Insurance at Justworks. "With ICHRA, employers set allowances, they don't choose plans. ICHRA often means complexity for employers: setting allowances, managing reimbursements, and staying compliant. By embedding Thatch’s onboarding, administration, and compliance capabilities into the Justworks experience, we’re helping take that work off employers’ plates so owners can focus on what they do best: running their business.”
According to Justworks research, 80% of talent-concerned small business owners say it is difficult to find a health benefits solution that works for employees’ different needs, reinforcing the growing challenge of balancing employee expectations with business realities.
With Justworks’ ICHRA offering, powered by Thatch, small businesses can:
Give employees more choice: Enable employees to choose individual plans that fit their doctors, prescriptions, networks, families, and budgets through Thatch’s guided plan selection experience
Maintain predictable benefits costs: Set a monthly, tax-free allowance for employees to use toward individual health insurance coverage
Focus on your business, not benefits administration and compliance: Access embedded ICHRA setup, plan administration, reimbursements, compliance support, and ongoing employee guidance
"Small businesses have historically had limited access to the breadth of benefits and personalized healthcare options available to larger employers,” says Gary Daniels, Chief Growth Officer of Thatch. “Together, Thatch and Justworks are changing that. By combining Justworks’ trusted platform with Thatch’s ICHRA infrastructure and Marketplace, small businesses can now offer employees greater choice, access to innovative health and wellness solutions, and a modern benefits experience that’s both simple to administer and built for today’s workforce."
Justworks delivers this offering in partnership with Thatch, the leading ICHRA platform purpose-built for modern health and wellness benefits administration. Thatch's technology powers the plan selection experience, payments infrastructure, and compliance engine behind the offering — enabling Justworks to bring ICHRA to small businesses at scale. Justworks and Thatch handle setup, employee guidance on plan selection, enrollment, reimbursements, payroll deductions, compliance management, and ongoing support.
To learn more, please visit https://www.justworks.com/.
About Justworks
Justworks is a technology company leveling the playing field for all small businesses. Through its software and as a partner, Justworks helps its customers take care of their teams, streamline their operations and navigate the complex aspects of managing a workforce with confidence. To achieve this, Justworks is uncompromising in its focus on building products for small businesses and understanding their unique needs. Justworks' flexible platform empowers small businesses to assemble powerful self-service capabilities to meet their payroll, tax, global HR, and compliance needs. Plus, Justworks offers 24/7 human support, on-demand expertise and access to high-quality benefits designed for the modern workforce.
About Thatch
Thatch is an all-in-one platform that makes it easy for companies to offer personalized healthcare benefits using ICHRA (individual coverage health reimbursement arrangements). By combining fintech and healthtech solutions, Thatch empowers businesses to provide tax-free dollars their team members can use to purchase personalized health coverage. Since launching in 2023, Thatch has helped thousands of companies across every industry improve their healthcare coverage while controlling costs. Learn more at thatch.com.
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