$0 — what Kaiser plans cost most FashionPass employees, after the employer contribution
2 hours — typical Thatch support reply time, as reported by the HR director
Source: FashionPass, Client Interview
Quick Facts
Results: lower cost, better plan choice for employees, and higher participation
Company size: about 250 employees, roughly 190 to 200 in the warehouse and 35 to 40 on the corporate side
Background
FashionPass employs about 250 people. Most work in the warehouse, and the rest work on the corporate side. The company's group plan with Anthem cost a little over $300,000 a year, before employee contributions. Enrollment never reached the 40% the carrier wanted, even though the HMO plan was almost free. Many warehouse employees qualify for Medi-Cal or already have coverage through a spouse. The renewal came back $45,000 higher with worse plans, and the lowest tier of Kaiser was the only real option left.
Approach
FashionPass's HR director found Thatch and liked that it gave employees their own health budget instead of one plan for everyone. She brought their broker, USI, as the decision got close, and the broker ran its own research and underwriting review. An employee health budget platform was new to her, so she wanted a partner who could teach her the model. FashionPass and USI worked with Thatch to decide what to offer employees during the move off group coverage. Employees got a set of Kaiser and PPO plans to pick from instead of one plan.
Outcome
Enrollment grew after the switch, and the HR director saw the biggest gain among warehouse employees. She says employees were surprised by how much FashionPass covers, since many Kaiser plans cost them nothing. Some people chose a PPO and paid a little more so they could keep seeing a specific doctor. Employees told her that four or five PPO options felt like a real choice without being too much to sort through. Now many of the warehouse workers who historically shied away from coverage are signing up for plans on Thatch due to lower costs and a simple approach to plan selection. On the admin side, she points to the billing platform, the reporting, and support replies that come back in about two hours.
💬 “Thatch is an innovative healthcare platform that truly gives autonomy to the employee. They can choose what best benefits them.” — Taryn Petronella, HR Leader, FashionPass
