Level-Funded Plans
Level-Funded plans combine elements of both fully insured and self-funded models. Employers pay a predictable monthly amount that covers administrative fees, stop-loss insurance, and expected claims.
If claims are lower than expected, the employer may receive a refund at the end of the plan year.
How It Works
- ✓ Fixed monthly payments for budgeting stability.
- ✓ Built-in stop-loss protection.
- ✓ Potential year-end surplus refund.
- ✓ Claims managed by an insurance carrier or administrator.
Key Benefits
- ✔ Predictable monthly costs
- ✔ Reduced financial risk
- ✔ Opportunity for savings
- ✔ Access to claims data insights
Who Should Consider Level-Funding?
Level-funded plans are often ideal for small to mid-sized employers seeking cost control with less volatility than traditional self-funding.