Level-funding, a self-insurance hybrid, helps companies to benefit from the regular and predictable cost of a fully insured plan, while only paying for the healthcare costs actually incurred by employees.
This approach can potentially provide a 30 to 40% annual refund on health benefit costs.
While it does require more work and more member education, other benefits include access to claims data, plan flexibility and the ability to better contain costs from year to year.
And b
ecause level-funding is considered self-funded, these type of plans are typically exempt from state taxes and a good deal of the health reform law’s insurance taxes.
If an employer is financially stable and their employees are relatively healthy, level-funding is a viable option.
Stop-loss insurance will provide protection, and there are also opportunities to save money when health care costs go down.
We’re proud of our Level Funded plan offerings. With more than 30 years of experience and a proven track record of success, we can help your clients make an easy transition from being fully insured to enjoying the many benefits of self-funding.
Did You Know?
You can use Reference Based Pricing with a Level Funded Plan.