Level-funding is an attractive option for employers weary from high premiums and rate increases. While Self-Insured plans create the potential risk and negative impact on cash flow should a high-cost event happen, Level-funding has stable monthly payments like a traditional health insurance plan, but offers protection from high claims and a full refund on any unused claims dollars.
Savings for You and Your Team
Level-funded health plans costs less because you are only paying for the health care that is used by your employees.
For level-funded plans, your price is based on your group’s health conditions. Fully-insured plans are priced using a “community rating” of all covered employees your entire geographical area. This means you can see a large premium increase even if your employees’ claims are low. Depending on how accurate your current pricing is, quoting based on your group only can save a lot of money.
Like all self-insured plans, level-funded plans are exempt from federal and state taxes on gross premium.
Employer savings average about 20%, but can be higher or lower depending on your unique group.
Budget Certainty
With a level-funded plan you will have a fixed monthly payment that is made up of three costs:
- Estimated Claims Costs
- Stop-loss Insurance Premium
- Administration Costs
You will never be asked to pay more than your monthly payment, regardless of claims. If claims are higher than expected, the stop-loss insurance will kick in to pay the overage. If claims are lower than expected, at the end of the plan year you will receive a refund. Membership.com only works with carriers that offer a 100% refund of unused claims dollars.
With a level-funded plan, you can save money while being sure that a catastrophic claim won’t negatively affect your annual budget.
Personalized Employee Benefit Plans
Fully-insured plans are controlled by the carrier. Level-funded plans offer flexibility. Membership.com has worked with top carriers to create a wide variety of out-of-the-box solutions that can be customized with modern benefits that suit your business that your employees will love. In addition to top-notch health coverage, your benefit plan can include savings on services such as telehealth with no copay, wellness programs, chiropractic etc.
Did you get a big renewal and want to switch to a level-funded plan that closely matches the care of your existing plan, with lower rates? Our pre-designed plans are ready to go when you are.
Want to work together and build a plan entirely from scratch? We can do that too. Get in touch today for a fully custom plan.
Data Transparency
The carrier controls all of your employees’ claims data in a fully-insured plan. You are not able to see how many or what kinds of claims were made, and you have no idea how much of the premium you paid actually went to healthcare costs.
A level-funded plan is a form of self-insurance, giving you greater access to this information. While you can’t see any individual’s personal medical information, you have access to the number of and types of claims filed, the total cost of claims, your stop-loss premium and any amount of overage that your stop-loss paid.
The greater transparency of data from a level-fund plan allows you to budget for and implement wellness programs and initiatives to improve your employees’ health and lower your costs over time.
Administration and Support
The flexibility of level-funding allows you to find a plan that suits your healthcare needs with the modern benefits that employees actually use. Call us to today and let’s start a conversation about your business. We will work with preferred carriers to find a plan that is just right and then serve as your team for carrier relations, claims support, and all of your compliance and reporting needs.