Level Funded Health Plans
Large employers have many alternatives available to them for the financing and design of their employee benefit plans, which allow them to more effectively control their health plan costs. However, small employers have historically been limited to fully insured plans, limited plan design options and no real opportunity to control premium costs other than shifting a greater percentage of the cost to plan participants. With level funding, and by simply changing the manner in which you finance the cost, you can regain control of your health plan costs and maximize the opportunity for future savings.
With a Level Funded Plan:
- You fund your claim expenses and fixed costs up to a pre-determined monthly amount usually totaling less than your current fully insured premium. If your actual claims expenses are less than the monthly amount, times twelve, you receive a 100% refund of the unspent claim costs.
- If your actual expenses are greater than the amount that you fund, then your stop loss protection provides coverage for the excess claim costs.
- Fixed expenses, representing stop loss premiums and administration fees, are not refundable.