Level-Funded Health Insurance What Is Level-Funded Health Insurance?
Level-funded health insurance is a hybrid model that combines elements of fully insured and self-funded plans. Employers pay a fixed monthly premium that covers expected claims, administrative fees, and stop-loss insurance. This structure provides cost predictability while offering potential savings if claims are lower than expected.
How it Works
Benefits for Employers
Level-funded health insurance offers cost predictability through fixed monthly premiums, making it easier for employers to budget and reducing financial uncertainty. If claims come in lower than anticipated, employers may benefit from potential savings by receiving a refund of unused funds. These plans also allow for customization to meet the unique needs of the workforce, with options to choose specific networks, deductible levels, and benefit designs. Additionally, employers gain valuable transparency and control with access to detailed claims data, helping them identify cost-saving opportunities and manage healthcare spending more effectively.
Benefits for Employees
- Comprehensive Coverage: Access to a wide range of medical services, including preventive care, hospital stays, and prescriptions.
- Lower Premiums: Shared costs make premiums more affordable than individual plans.
- Pre-Tax Contributions: Premiums are often deducted from paychecks before taxes, lowering taxable income.
- Family Coverage: Many plans offer the option to include spouses and children, providing family-wide protection.
Is Level-Funded Health Insurance Right for Your Business?
Level-funded health insurance can be an ideal solution for businesses seeking to offer flexible and cost-effective health benefits. It is particularly beneficial for companies with stable, healthy employee bases and those looking to provide benefits to employees who may not be eligible for traditional group health plans.
Get Started with Level-Funded Health Insurance
Ready to implement a level-funded health insurance plan for your business? Contact us to learn more about how level-funded plans can enhance your employee benefits package and streamline your healthcare offerings.
