Employee Benefits Solutions
Offering fully insured and level funded benefit package solutions to small businesses. Protect your team while managing your bottom line.
Schedule ConsultationHow Does Level Funded Health Insurance Work?
Level funded health plans offer a unique way to help manage your business's increasing healthcare costs. Here is how the process works from underwriting to your potential year-end refund.
1. The Underwriting Process
The group is underwritten by checking the following three requirements: every employee's prescribed medication, dates of birth, and the zip code they reside in. This detailed assessment will determine the plan's premium for the year.
2. The Three Premium Buckets
Unlike traditional plans where your premium goes into a black hole, the premiums you pay in a level funded plan are divided into three distinct buckets of money:
- Claims fund (to pay for employee medical expenses)
- Stop-loss insurance (to protect against catastrophic claims)
- Sales and administrative costs
3. Year-End Refund Potential
At the end of the year, depending on what the groups' claims history looks like and if the stop loss insurance limit was hit, the employer could be eligible to receive a refund of a portion of premiums back to distribute to the employees.
Ready to take control of your healthcare costs?
Interested in a unique way to help manage your business's increasing healthcare costs? Level funded could be the solution you've been looking for.
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