Level-Funded Plans 101
July 24, 2024 | Tags:
What is a level-funded plan?
Small businesses have a variety of unique needs, and health insurance is no exception. While traditional health insurance plans are common, sometimes they don’t fit with the specific demands of your company. A level-funded plan offers solutions beyond the options of 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 insurance plan. However, it offers the opportunity to receive an annual refund of unused premiums – the best of both worlds!
Why should I explore a level funded plan as an alternative to a traditional health plan?
With fully insured plans, two things happen:
- Your business pays a fixed premium to a health insurance company.
- The health insurer pays for the cost of claims, administration and sales commissions.
Traditional health plans mean you know exactly what you pay each month. However, if the claims are lower than expected, you won’t receive a refund or rebate for the unused money.
With a level-funded plan, predictability and the chance for money back are key features.
For this option, 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 predetermined claims fund amount that provides the chance for refunds and rebates.
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 help put unused health insurance premiums back in employers’ pockets.
This innovative plan is available to groups of 10-50 employees (with a minimum of 10 enrolled).