What Is Level-Funded Health Insurance?
With level-funded health plans, the employer pays for coverage, and the health carrier accepts and processes claims. This payment consists of a monthly cost that employers spend in anticipation of potential medical needs among their team. This includes expected claims, stop-loss insurance premiums and overall administrative costs.
This form of insurance comes with several benefits for employers and team members. For one, expenses are much more predictable, making it easier to stay within budget when paying for coverage. There’s also less required administrative maintenance on the part of the company, allowing them to devote their attention to other important facets of their business.
Who Is Ideal for Level-Funded Health Plans?
When a fully insured method of coverage is too expensive, level-funded health insurance is a wonderful alternative. This is why this type of plan often works best for smaller companies and startups. Budget-conscious midsized businesses can also gain an advantage by being able to more accurately predict monthly expenses. So, if your client is a smaller company looking to provide their team with reliable coverage that works with budget restrictions, this could be just the plan you need.
The Warner Difference
Warner Pacific sets out to be a useful insurance resource for small and large businesses alike. We work with several level-funded plan partners to ensure that you get all the information you need to make an informed decision. Additionally, we’re always available to answer questions and provide you with support.