Level-Funded Plans 101
October 18, 2022 | Tags:
What is a level-funded plan?
Small businesses have a variety of unique needs, and health insurance is no exception. Sometimes, traditional health insurance plans don’t fit those unique needs. That’s where level-funded plans offer a solution beyond a traditional fully insured or self-funded plan.
Level-funded health plans are where the employer pays a monthly premium that mimics the same fixed costs as a traditional fully insured plan, with an opportunity to receive an annual refund of unused premiums. Think of it as a best of both worlds option.
Why should I explore this as an alternative to a traditional health plan?
With fully insured plans, your business pays a fixed premium to a health insurance company, and the health insurer pays for the cost of claims, administration and sales commissions. You know exactly what you pay each month. Although, if claims are lower than expected, you wouldn’t get that unused money refunded.
With a level-funded plan, you pay a consistent monthly premium that mirrors the same fixed costs as a traditional fully insured plan. It also contains a stop-loss and a pre-determined claims fund amount to allow the opportunity for a refund. Predictability and the chance for money back are key features.
Are you interested in exploring a level-funded plan?
Contact your Medical Mutual Sales representative or broker today, or request a quote of Balanced Solutions®, our level-funded plan offering that can put unused health insurance premiums back in employers’ pockets. This innovative plan is available to groups with 10-50 employees (with a minimum of 10 enrolled).