ADP has announced a new integration with Thatch, an Individual Coverage Health Reimbursement Arrangement (ICHRA) platform, within its RUN Powered by ADP payroll solution. This move enables more than 900,000 small businesses to access and manage ICHRA health benefits directly through their payroll system.
Employers using RUN can now discover, quote, and activate ICHRA plans from Thatch within the same platform. The integration also automates payroll deductions and carrier payments, reducing administrative tasks for businesses. Employees are given the flexibility to select health, dental, vision, and other plans that best meet their needs in a single experience.
Matt Farwell, ADP president of small business, retirement and insurance services, stated: “One of the big benefits small businesses have today is the ability to be quick and flexible. Integrating Thatch into RUN gives organizations that power. As the small business landscape continues to change every day, leaders can now offer workers, their most valuable asset, direct access to the benefits that matter most to them.”
Traditional group health plans have become less accessible for many small businesses due to rising costs and complex administration. ICHRAs present an alternative by allowing employers to set tax-free monthly allowances for employees to purchase individual coverage tailored to their needs.
The partnership between ADP and Thatch builds on ADP Ventures’ strategic investment in Thatch earlier this year. The integration is designed so employers can request quotes and enroll in ICHRA benefits through an embedded interface. Payroll deductions are synced automatically, carrier payments are managed efficiently, and compliance support is included.
Chris Ellis, CEO and co-founder of Thatch, commented: “Our integration with ADP represents a major step forward for small business healthcare access and affordability. Payroll is the operating system for most small businesses. By embedding Thatch directly into ADP’s platform, small business owners can quickly and easily offer flexible, affordable health benefits without the administrative burden. Together, we’re helping small business owners compete for talent by enabling them to offer affordable health.”
ADP serves over 1.1 million clients across more than 140 countries with HR and payroll solutions ranging from simple tools for small companies to integrated platforms for global enterprises.
Thatch launched in 2023 as a platform aimed at helping companies provide personalized healthcare benefits through ICHRAs by combining financial technology with healthcare solutions.
