Executive Summary
Facing a projected 25% fully insured renewal increase from its group health plan, Crossroads transitioned to Thatch to regain control over rising renewal costs and long-term volatility. By moving to a defined-contribution ICHRA model, Crossroads:
Avoided nearly $943,000 in projected renewal increases
Reduced per-enrolled-employee costs 21%, from $7,507 (2024) to $5,917 (2025)
Increased participation from 51% (369 enrolled) to 59% (428 enrolled) in Year 1
When the Crossroads HR team began evaluating their 2025 benefits strategy, they faced a familiar, but increasingly unsustainable, challenge: rising renewal costs and limited control under a fully insured group health plan. Projected renewal increases of 25% threatened both budget predictability and employee experience.
By transitioning to Thatch with an ICHRA-based model, Crossroads replaced a volatile, claims-driven renewal cycle with a defined-contribution strategy that delivered measurable cost savings and expanded employee choice — without compromising satisfaction or participation.
The Challenge: Escalating Costs and Limited Control
Crossroads had been on a fully insured group health plan prior to working with Thatch. In recent years, renewal rate increases had accelerated:
Claims volatility was driving unpredictable rate swings, making budgeting difficult for a growing organization focused on financial discipline.
Under the fully insured model, there were no meaningful levers to control cost beyond absorbing the increase.
💬 “Cost was the main driver. Our renewals were going to be extremely high, so we started exploring alternatives.” - Maggie Chapman, Director of People Operations at Crossroads
Working alongside their broker, Laurie Winston, Office Leader at Alera Group, the team evaluated self-funding and captives.
💬 “The enrollment trend I would have applied for Crossroads for 2026 would have been 13% plus claims. Their main issue was bad claims — and claims are a large part of the rate increases for a group this size.” - Laurie Winston, Alera Group
Ultimately, the structural advantage of ICHRA stood out.
💬 “Experience isn’t built into the rate. That was a big differentiator.” - Maggie (Crossroads)
In other words, renewal costs would no longer be tied to Crossroads’ own claims experience.
Crossroads needed a model that shifted cost control from the carrier to the employer, replacing reactive renewals with a proactive contribution strategy. That's the shift Thatch was built to enable.
Year One: Immediate Savings for Employer and Employees
Under the projected fully insured plan renewal, maintaining the same employer contribution while absorbing the 25% increase would have resulted in approximately $943,000 in additional net cost.
Instead, Crossroads moved to Thatch and implemented an ICHRA contribution strategy based on a Silver benchmark with 75% employer cost-sharing.
The result:
Approximately $943,000 in avoided renewal impact
Net savings of approximately $28,000 after vendor fees and salary increases
Per-enrolled-employee costs decreased 21%, from $7,507 (2024) to $5,917 (2025)
Importantly, this was not a story of employer savings at the expense of employees.
Employees responded positively to the transition:
The majority experienced lower monthly premiums
They gained expanded plan choice beyond a traditional three-plan group structure
They could select coverage tailored to their needs and use remaining funds for QMEs
💬 “The majority of our employees were seeing a cost decrease. Better coverage at a lower cost.” - Maggie (Crossroads)
This is underscored by participation increasing from 51% (369 enrolled) pre-transition to 59% (428 enrolled) in Year 1, and continuing to grow to 457 enrolled during renewal planning for 2026.
Savings and satisfaction moved in the same direction.
First Renewal: Strategic Levers, Not Surprises
Facing a uniquely volatile 2026 rate environment, with double-digit increases across many geographies, Crossroads didn’t simply absorb rising costs. They limited per-enrolled-employee cost increases to a manageable level by using Thatch’s contribution strategy as a lever.
Rather than adjusting their allowances on a single blended average, the team (in close partnership with Laurie at Alera) used Thatch’s multi-tier allowance strategy to manage costs across geographies, household composition, and benefit needs.
💬 “The method of control is contribution strategy. That’s our lever, and that gives us flexibility.” - Laurie (Alera Group)
This multi-class approach allowed Crossroads to:
Align employer budgets with cost variation across geography, age, and family size
Ensure equitable buying power across the workforce
A Better Employee Experience
While controlling benefits costs was a primary objective, Crossroads knew savings couldn't come at the expense of employee satisfaction.
Leadership was clear: if employee experience deteriorated significantly, attrition risk would rise.
Instead, the opposite occurred.
One year in, employees have embraced the flexibility and transparency the model provides.
They value:
The ability to choose plans that fit their needs
Clearer cost visibility and control
Direct access to licensed plan advisors
💬 “People like picking the plan that meets their needs instead of choosing from just one of three. It’s very nice to confidently point employees to Thatch’s support team and know they’ll be helped.” - Maggie (Crossroads)
Open enrollment became smoother in Year 2:
Employees required less hand-holding
Most went directly to Thatch’s support team for plan guidance
Escalations remained minimal despite allowance adjustments
The result was a mutually beneficial shift; cost control for the employer and improved agency for employees.
Partnership & Broker Alignment
Over the course of the first year, Crossroads experienced Thatch as a true partner that was receptive to feedback, transparent when issues arose, and committed to delivering product improvements based on real customer input.
As renewal season approached, that partnership extended into strategic planning. Laurie worked closely with Crossroads and Thatch to analyze contribution strategies and stress-test renewal scenarios.
💬 “Under fully insured, claims are driving your rate. With ICHRA, the employer has a lever.” - Laurie (Alera Group)
Crossroads also emphasized Thatch’s transparency and responsiveness.
💬 “You’re incredibly receptive to feedback and fully transparent about what happened and why. That level of honesty builds real trust.” - Maggie (Crossroads)
The team also noted meaningful product evolution over the first year:
Reporting enhancements
Plan selection and comparison improvements
Medicare reimbursement streamlining
Payroll file improvements
Platform UX updates during Open Enrollment
💬 “We’re continuously seeing that you’re acting on feedback. That builds confidence.” - Maggie (Crossroads)
Why Crossroads Continues to Choose Thatch
Today, Crossroads views ICHRA as a long-term structural advantage, not a short-term cost workaround.
Per-enrolled-employee costs remain materially below pre-transition levels
Participation remains strong
Renewal increases are more controllable
Employees have welcomed Thatch, and enrollment continues to grow
As Crossroads continues to grow, including a recent acquisition adding ~140 employees, Thatch’s model scales across geographies without exposure to internal claims volatility.
The Bottom Line
By moving from a fully insured group plan to ICHRA with Thatch, Crossroads replaced unpredictable, claims-driven renewals with a defined-contribution strategy they control. The result: measurable cost savings, improved employee experience, and stronger participation — all without sacrificing benefits quality.
Taken together, Thatch provides a scalable benefits model that delivers both financial discipline and operational simplicity.
