Looking for low-risk domestic U.S. self-funded health insurance options? – Consider Level Funding.
Level self-funded health insurance allows employers in the USA to save premium, while designing a health plan around their employees needs (rather than ACA requirements). We call it “level-funding” rather than just “self-funding” because the amount you pay each month never changes (during the plan period), regardless of your claims activity. And it works for groups with as few as 5 W-2 employees (even sometimes as low as 3) if you have a healthy group/little claims activity! (If you have few employees and you know one is struggling with their health or had a lot of claims, it probably wouldn’t make sense to self-fund. But, if you are healthy, and paying way too much, and would lie to have more control over your health plan, complete the quick census below!)
Do you qualify? Are you a healthy group, but your renewals keep going up? See “Is your group…” below.
Here’s how to save using level-funding:
- STEP 3 – A preliminary quote is presented/discussed
- STEP 4 – If the preliminary quote looks good, group completes medical questionnaire online
- STEP 5 – Underwritten rates returned to you, employer forms are completed and submitted along with a check for the first month’s premium.
Once enrollment is complete, an account manager is assigned and an administrative portal is set up for you.
IS YOUR GROUP HEALTHY BUT STILL GETTING HIGH RATE INCREASES?
With traditional fully-insured plans, everyone’s premium dollars go into one large pool that pays for everybody’s claims. So when there are a lot of claims, the healthy groups get the same high rate increases as the unhealthy ones. But with level-funded plans, a portion of your monthly payment goes into your group’s own claims reserve account and if you have lower than expected claims and there’s money left over, you’ll see a refund!
If you can answer these two questions ‘NO’ your group could be a good candidate for level-funding:
Question #1: Does anyone in your group have an ongoing condition such as cancer, heart disease (other than high blood pressure), rheumatoid arthritis, Type 1 diabetes, epilepsy, hepatitis or Crohn’s Disease?
Question #2: Has anyone been hospitalized in the last year (other than for pregnancy) or have a surgical procedure pending?
If your group has 20 or more employees and one or two of these conditions exist, it’s still possible to find rate relief through level funding.
Why is our level self-funded health insurance plan becoming so popular?
This new trend in self funded health insurance applies to groups both large and small, for the first time allowing smaller organizations with under 20 staff to reap the benefits of a self-funded health plan:
- Not subject to age/gender requirements
- Avoid or adjust mandated essential benefits
- Plan Flexibility – Not as strict plan limitations
- Only pay for your claims not poor performers or increasing carrier profits
- Renewal increases based on your claims, not trend our others performance
- Wellness incentives provide savings to you, not the carrier
- Premium savings if claims are less than expected
- Never pay above your set amount even if claims exceed your expectations
- Better claim activity reporting and transparency
Some advantages of a Level self-funded health insurance plan:
- Guaranteed set monthly premiums
- The opportunity for a refund – If claims are lower than reserve
- Stop loss protection – If claims are higher than expected
- Long-term savings
- Savings on state premium taxes
- Better reporting and transparency
- Less risk to the employer than self-funded and fully self funded plans
- Experienced, knowledgeable help and advice – rather than “going it alone”
We would love to demonstrate using specific numbers, the cost comparison and savings associated with a level self funded health insurance plan customized for your company or organization.
Self funding your group health insurance is not right for all employers.
While it provides opportunity for significant savings, provides plan flexibility, and renewal increases based on your own results (rather than general trend or the poor performance of a book of business), not every employer qualifies for level self funded health insurance.