Thatch and ADP Simplify Small Business Healthcare with Seamless ICHRA Integration via RUN Powered by ADP
Rhea-AI Summary
ADP (Nasdaq: ADP) announced on December 11, 2025 an embedded integration of Thatch's ICHRA platform into RUN Powered by ADP (RUN). The integration gives employers access to ICHRA discovery, quoting, activation, and enrollment directly inside RUN, and automates payroll deductions and carrier payments.
Key features include embedded discovery & activation, automated payroll sync to reduce manual work, and a unified employee experience for selecting health, dental, and vision plans. The integration builds on ADP Ventures' April 2025 strategic investment in Thatch and targets ADP's RUN user base of more than 900,000 small businesses.
Positive
- Integration available to more than 900,000 RUN small-business users
- Automated payroll sync for deductions and carrier payments
- Employers can discover, quote, and activate ICHRA inside RUN
- Employees can select health, dental, vision plans in one workflow
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed but generally positive moves, with names like ADBE, CDNS, INTU, and NOW up between 0.29% and 1.3%, while MSTR is down 2.47%. With sector momentum flagged as false and no peers in the momentum scanner, the setup around this ADP news appears company-specific rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Awards recognition | Neutral | -0.2% | Announced finalists for 2026 HCM Distinction Awards recognizing use of ADP tech. |
| Dec 09 | Employment data update | Neutral | -0.2% | Preliminary NER Pulse showed private employers adding 4,750 jobs per week. |
| Dec 03 | Employment report | Neutral | +1.2% | ADP report showed 32,000 private jobs shed and detailed pay growth metrics. |
| Nov 25 | Employment data update | Neutral | +2.5% | NER Pulse indicated employers shed an average of -13,500 jobs per week. |
| Nov 24 | Product evaluation win | Neutral | -1.2% | ADP Workforce Now named a Leader in Forrester HCM Wave Q4 2025. |
Recent ADP news events, mainly employment reports and product recognition, have produced modest, mixed price reactions without a consistent directional pattern.
Over the last few weeks, ADP has issued several data and product-focused updates. Employment reports in late November and early December 2025 showed mixed labor trends and led to price moves between about -0.18% and 2.48%. Separately, ADP Workforce Now was named a Leader in a major HCM evaluation, but the stock dipped slightly afterward. Against this backdrop, today’s Thatch integration news extends ADP’s strategy of enhancing its platforms, this time targeting small business healthcare access inside RUN Powered by ADP.
Market Pulse Summary
This announcement highlights ADP embedding Thatch’s ICHRA platform directly into RUN Powered by ADP, giving more than 900,000 small businesses integrated access to flexible health benefits. It extends ADP’s April 2025 strategic investment in Thatch and reinforces a strategy of enhancing its core payroll software with partner capabilities. Investors may watch adoption among RUN clients, the breadth of plans selected through Thatch, and future disclosures on revenue or engagement tied to this integration.
AI-generated analysis. Not financial advice.
New embedded solution empowers more than 900,000 small businesses to offer flexible, affordable health coverage directly in RUN Powered by ADP® (RUN)
- Integrated ICHRA Experience: Employers can discover, quote, and activate ICHRA plans through Thatch directly within RUN.
- Streamlined Administration: Payroll deductions and carrier payments are automated, reducing administrative burden.
- Flexible Employee Choice: Through Thatch, employees can select health, dental, vision, and other plans that best meet their needs in one seamless experience.
The integration builds on ADP Ventures' April 2025 strategic investment in Thatch, showcasing how ADP accelerates innovation by partnering with startups and embedding their capabilities directly into ADP's software to drive measurable client impact.
"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," said Matt Farwell, ADP president, small business, retirement and insurance services. "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."
The Rise of ICHRAs
Rising costs and administrative complexity make traditional group plans challenging for many small and mid-market businesses. ICHRAs offer a durable alternative: employers can set tax-free monthly healthcare allowances that employees can use to purchase individual health, dental, vision, and other plans tailored to their needs.
Thatch and RUN Working Together
With Thatch embedded in RUN, employers can request a quote and enroll in ICHRA benefits through an embedded interface. The integration syncs payroll deductions, automates carrier payments and helps employers stay compliant, and empowers employees to choose their preferred coverage via the tool businesses already use.
Key Benefits of the Thatch–ADP RUN Integration:
- Embedded Discovery & Activation: Employers can discover, activate, and manage Thatch's benefits natively within RUN, guided by intelligent recommendations.
- Automated Payroll Sync: Contributions are automatically deducted, helping to reduce manual work, errors, and administrative time.
- Choice & Simplicity for Employees: Through Thatch, workers can then select health, dental, vision, or other plans that fit their needs in one streamlined experience.
"Our integration with ADP represents a major step forward for small business healthcare access and affordability," said Chris Ellis, CEO and co-founder of Thatch. "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."
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About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises — and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
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 more than 1,000 companies across every industry improve their healthcare coverage while controlling costs. For more information, visit Thatch.com
ADP, the ADP logo, and Always Designing for People, are trademarks of ADP, Inc. All other marks are the property of their respective owners.
Copyright © 2025 ADP, Inc. All rights reserved.
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SOURCE ADP, Inc.
FAQ
What did ADP announce about Thatch integration on December 11, 2025?
How many RUN small-business users can access Thatch ICHRA after the ADP announcement?
What payroll automation does the ADP–Thatch integration provide for ADP (ADP) clients?
What employee benefits can be selected through Thatch inside RUN?
How does the ADP Ventures investment relate to the Thatch integration?
Where do employers manage ICHRA enrollment after the ADP and Thatch integration?
