What Is a Level Funded Health Insurance Plan?

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Providing your clients with the best possible insurance options is crucial when you’re a broker. With healthcare costs skyrocketing, your clients may struggle to find affordable options that still meet their needs. That’s where level funded health insurance plans come in. We’ll explore what a level funded health insurance plan is and the benefits it can offer your clients.


Explaining Level Funded Insurance

First, let’s define what you can expect from one of these plans. Simply put, level funded insurance plans are a hybrid option combining self-funded and fully funded health insurance options. With a level funded plan, the employer pays a fixed monthly premium, much like a fully funded model. However, if claims don’t meet a certain threshold, the employer gets part of that premium back. If claims exceed that threshold, the employer is responsible for the difference, much like a self-funded plan.


Lowered Upfront Costs

Now that you have a basic understanding of a level funded health insurance plan, let’s dive into the benefits. One of the key advantages of a level funded plan is cost savings. Because the employer pays a fixed amount, regardless of the number of claims, it can be less expensive than a fully funded plan. Plus, if claims don’t exceed the threshold, the employer gets a portion of that premium back. This allows for greater predictability and control over healthcare spending.


Plan Flexibility

Another benefit of a level funded plan is greater flexibility and customization. Employers can choose the level of coverage they want to offer and add benefits like dental, vision, and mental health coverage. They can also tailor the cost-sharing structure to meet the needs of their employees. This level of flexibility can make a level funded plan a more attractive option for employers.


Additional Resources

Additionally, level funded plans often come with more robust wellness programs and resources to help employees take control of their health and prevent costly claims. These programs can include things like health coaching, fitness incentives, and chronic disease management. Employers can potentially reduce healthcare costs over time by investing in their employees' health.


Superior Spending Transparency

Lastly, a level funded plan can offer greater transparency and control over healthcare spending. Employers have access to detailed claims data, allowing them to identify areas where costs may be higher than expected and adjust accordingly. This level of control can lead to more efficient use of healthcare dollars and potentially lower costs over time.

A level funded health insurance plan can be an attractive option for many employers. As a medical insurance broker, it’s essential to educate your clients about this type of plan and help them determine if it’s the right fit for their needs. By partnering with Warner Pacific, you can offer your clients access to various insurance options and the support they need to make informed decisions about their healthcare coverage. Our level funded insurance plan quoting services will help pinpoint the perfect plan for your search requirements. Reach out to us today to learn more.

Source: Warner Pacific