Cigna Level Funding: a Strategic Funding Alternative

Cigna Level Funding for California is a strategic funding alternative to age-rated plans even for clients with fewer than 100 employees.*

Why Level Funding?
Learn more about level funding by clicking on this link.

Alternative to small group
  • Four-tier rates
  • Access to utilization data and renewal calculations
  • Receive surplus return
  • Plan design flexibility
  • Dedicated account team
  • Continuity across all states
  • Tax savings
How it works
There are consistent payments and opportunities to save:
  • Groups can pay a fixed monthly payment
  • Cigna pays covered claims
    • If claims are lower than expected, renewing clients are eligible to get 50% or 67% of the savings back.**
    • If claims are higher than expected, clients do not have to pay more.
  • Year-end accounting summarizes actual plan costs
  • Cigna holds money to pay for claims incurred prior to termination***
  • Self-funded contract
Pricing incentives
Cigna requires a member-level census to quote. A GRx score is created by using prescription history and predictive modeling. A fixed-cost credit is offered based on the member-level census (GRx) score:
  • High GRx discount = six-month, fixed-cost credit
  • Low GRx discount = three-month, fixed-cost credit
  • No GRx discount or increment = one-month, fixed-cost credit
Member surplus guarantee
Cigna is offering clients a guaranteed surplus of $200 per member. For example, if a client has 100 members, Cigna will guarantee the client’s share to be at least $20,000. The client must renew to earn their surplus, which will be applied to the fourth month of the new plan year.

For more information, please contact your Warner Pacific Sales Consultant at (800) 801-2300.

* Cigna Level Funding for California is available to employers with as few as 25 full time employees.
** The client’s surplus share percentage will be determined up front, at either 50%, 67%, or 100%. Surplus is returned as administrative fee credit and applied fourth month.
*** But submitted after termination
Source: Cigna