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Frequently Asked Questions About Level-Funded Insurance

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What is Level-Funded Health Insurance?

Level-funded insurance is a hybrid health plan model that combines predictable monthly payments with the potential cost savings and flexibility of self-funded health care. 

Get quick answers to the most common employer questions about level-funded health plans, including costs, risks, savings opportunities, and plan flexibility. 

Compare Your Current Plan to a Level-Funded Option

Employers pay a fixed monthly amount that covers claims funding, administrative costs, and stop-loss protection. If claims are lower than expected, employers may receive a refund.

Level funding can offer more transparency, flexibility, and savings opportunities compared to traditional fully insured plans, especially for healthier employee populations. 

 Monthly payments in a level-funded health plan are typically based on expected claims costs, administrative fees, and stop-loss coverage. These fixed monthly payments help employers maintain predictable health plan budgeting throughout the plan year.

Small and mid-sized employers looking for predictable health plan costs, greater transparency, and potential savings opportunities should consider a level-funded health plan. It can be an ideal option for businesses seeking more flexibility than traditional fully insured coverage. 

If actual claims are lower than claims funding,100% of unspent dollars are returned to the client after runout and reconciliation.