Is It Time To Try Self-Funding?
Level Funding
Level funding is an alternative funding option. A variation of self-funding, this solution is one-of-a-kind in the marketplace. Level funding features preset monthly payments, with a high level of information and control for the client.
How level funding works
With a level funding solution, monthly payments are preset, based on the number of plan participants and total related costs (i.e., claims funding, premium and administrative fees), allowing the client to better budget their resources. Many employers enjoy the greater plan control of level funding and the opportunity to benefit from a positive claims experience through a year-end administrative fee credit.
Advantages of level funding
- Potential administrative fee credit with a positive claims experience.
- Consistent monthly payments for easy budgeting.
- Robust reporting to show group utilization and plan performance.
- Flexibility to accommodate utilization trends, Human Resource needs and inflation.
- Stop-loss insurance to limit liability.
- No state mandates mean clients can provide multiple locations with the same coverage.
Who benefits most from level funding?
A good fit for clients with employees in multiple markets that place a high value on predictable monthly budgeting and still offers the opportunity to save from a favorable claims year. The high level of reporting helps you keep an eye on how health care dollars are spent so you can adjust your plan as the economy shifts and your business grows.
Graded Funding
Graded funding, also a type of self-funding. This solution delivers robust reporting for a hands-on experience, full benefit design control and stop-loss protection to limit exposure.
How graded funding works
With graded funding, clients pay only for actual claim costs incurred and agreed upon administrative costs. If claims exceed the plan's stop-loss limits, the insurance company’s stop-loss insurance covers your claims, providing immediate protection and preserving your cash flow.
Advantages of graded funding
- Pay only for claims incurred.
- Robust reporting for a comprehensive view of health care benefit costs.
- Flexibility to accommodate for utilization trends, Human Resource needs and inflation.
- Stop-loss insurance to limit liability.
- No state mandates mean clients can provide multiple locations with the same coverage.
Who benefits the most from graded funding?
A good fit for clients who want to pay only for actual claims, but with full protection. They rely on the detailed reporting provided to analyze plan utilization and make adjustments to meet their changing needs.
Fully Insured
Fully insured is another way for our clients to fund their health care plan. Fully insured funding arrangement offers predictable monthly premiums, guaranteed protection for all covered claims and simplicity - with no additional costs.
How fully insured funding works
With a fully insured plan, the client pays the same monthly premium, regardless of the plan’s claim costs, and receives full protection, regardless of their claim status for the year.
Advantages of fully insured
- Predictable monthly premium for easy budgeting
- A strong proprietary nationwide network of health care professionals
- Award-winning health and wellness programs
- Full protection for covered claims
Who benefits most from fully insured?
A good fit for clients who like to keep it simple, and who favor predictable monthly costs, for easy budgeting. Fully insured funding is simple, easy to understand, with no surprise costs and the protection clients demand.
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