Level-Funded Plans
A hybrid funding strategy that gives employers fixed monthly costs, stop-loss protection, and money back when claims run under budget.
With a traditional fully-insured plan, you pay a fixed premium every year and the carrier keeps whatever they do not spend on claims. If your workforce is healthy, you are effectively subsidizing the carrier's margins. Most mid-size employers never see this money back and have no visibility into their own claims data.
Level-funded plans charge a fixed monthly amount covering projected claims, stop-loss insurance, and administration — so your budget stays predictable. If actual claims come in below the funded amount, you receive a year-end surplus refund instead of the carrier keeping it. We evaluate whether level funding fits your group and manage the entire transition end to end.
Healthy groups can save 15-35% compared to fully-insured plans, with surplus refunds returned directly to you.
Stop-loss insurance caps your exposure, giving you the upside of self-funding without the unpredictable downside.
Access to claims data lets you make informed decisions about plan design and future funding strategy.
A level-funded plan charges a fixed monthly amount that covers projected claims, stop-loss insurance, and administration fees. If claims come in under budget, the employer receives a year-end refund of the surplus.
Level funding works best for employers with 25-500 employees and a relatively healthy claims history. It is ideal for groups looking to reduce costs while limiting financial risk.
Stop-loss insurance is built into a level-funded plan to cap your financial exposure. If claims exceed the funded amount, the stop-loss carrier covers the excess, protecting your budget.
Employers with favorable claims experience typically save 15-35% versus a comparable fully-insured plan, plus any year-end surplus refund.
Yes. We evaluate whether level funding fits your group, model the potential savings, and manage the entire transition so there is no gap in coverage.