Level Funded Health Insurance Coverage
Blend full coverage and self insurance to reduce risks and manage costs
Level funding is emerging as a third option for small group health insurance somewhere in between fully insured and self-insured. Proponents of level funding argue that it offers the benefits of both insurance models with none of the risks. So how does it work?
The “level” of level funding refers to the fact that you self-insure, but pay a level or steady fee each month as determined by your TPA. Level-funded plans also come fully integrated with individual and aggregate stop-loss insurance.
Individual stop-loss insurance will kick in if a covered employee or dependent exceeds a certain dollar amount in claims.
Activated above a certain dollar amount for all claims. After you pay your level monthly fee for a year, your TPA will compare payments vs. claims and refund the difference if you’ve paid more than you've spent.
In summary, you get the regular and predictable cost of a fully insured plan, but because you’re actually self-insured, you only end up paying for the healthcare costs actually incurred by your employees.
An Example of
Level Funded Insurance Coverage
Stop Loss Premiums
Manage Your Benefits to Increase Coverage and Reduce Costs
Our professional team of insurers have a strong grasp on insurance solutions which can meet and exceed your needs. Start the conversation with our team to learn more about level-funded coverage and find out how much your small business could save.
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