Predictable Costs with Savings Potential through Level Funded Insurance
Get the stability of traditional insurance with the cost-saving potential of self-funding. Level funded plans offer predictable monthly costs, claims transparency, and potential premium refunds.
Level Funded Advantages
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Predictable Payments
Fixed monthly costs for budgeting
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Potential Refunds
Get money back for good claims experience
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Claims Transparency
See your actual claims data and trends
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Stop-Loss Protection
Protected from catastrophic claims
Save an average of 10-20% vs fully funded
How Level Funding Works
Level funded plans combine the best aspects of fully funded and self-funded insurance to provide predictability with upside potential.
Claims Fund
Expected claims costs based on your group demographics
Stop-Loss Premium
Insurance protection for claims exceeding expectations
Admin Fees
TPA services, network access, and plan management
Your Fixed Monthly Payment = Claims Fund + Stop-Loss + Admin Fees
If Claims Are Low
You receive a refund at year-end!
When your group's actual claims are lower than the claims fund you paid into, you receive a premium refund. Many employers see refunds of 10-30% of their annual premium.
Example:
Claims Fund Paid: $100,000
Actual Claims: $75,000
Refund: $25,000
If Claims Are High
You're protected by stop-loss!
When claims exceed your claims fund, stop-loss insurance kicks in to cover the excess. Your costs never exceed your fixed monthly payments.
Example:
Claims Fund Paid: $100,000
Actual Claims: $150,000
Your Cost: $100,000 (stop-loss pays $50k)
Best of Both Worlds
Level funded plans combine the advantages of fully funded and self-funded approaches.
| Feature | Fully Funded | Level Funded | Self-Funded |
|---|---|---|---|
| Predictable Costs | |||
| Potential Refunds | |||
| Claims Transparency | |||
| Risk Protection | Partial | ||
| Easy Administration | Complex | ||
| Cost Savings Potential | Low | Medium-High | High |
Is Level Funding Right for You?
Perfect For:
- Businesses with 25-200 employees
- Companies with healthy employee populations
- Employers frustrated with annual rate increases
- Organizations wanting claims visibility
- Businesses ready for more control
- Companies seeking cost reduction opportunities
Key Benefits:
- Average savings of 10-20% vs fully funded
- Cash flow stability with refund potential
- Complete claims data transparency
- No surprise mid-year assessments
- Easier transition to full self-funding later
- Potential PEPM rates under $500
Ready to Explore Level Funding?
Discover how much you could save with a level funded plan. Our group benefits specialists will analyze your current plan and show you the potential savings and refund opportunities.