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Level Funded Coverage

Home Level Funded Coverage

Level Funded Health Insurance Coverage

Blend Full Coverage and Self Insurance to Reduce Risks and Manage Costs

Level funding is emerging as a third option for small group health insurance somewhere in between fully insured and self-insured. Proponents of level funding argue that it offers the benefits of both insurance models with none of the risks. So how does it work?

The “level” of level funding refers to the fact that you self-insure, but pay a level or steady fee each month as determined by your TPA. Level-funded plans also come fully integrated with individual and aggregate stop-loss insurance. Individual stop-loss insurance will kick in if a covered employee or dependent exceeds a certain dollar amount in claims. An aggregate stop-loss will be activated above a certain dollar amount for all claims. After you pay your level monthly fee for a year, your TPA will compare what you’ve paid for the actual claims and refund you any difference if you’ve paid more than you’ve spent. In summary, you get the regular and predictable cost of a fully insured plan, but because you’re actually self-insured, you only end up paying for the healthcare costs actually incurred by your employees.

Benefits of Level-Funding for Small Business

Benefits of Level Funding Insurance Plans for Small Business Level-funding is becoming popular because plans following this model are not subject to several key regulations of the Affordable Care Act. For example, they don’t have to offer a package of mandated benefits. Because plans are self-insured, they can be written to the specifications of the business owner. Also because level funded plans are technically self-insured, business owners also avoid paying the Health Insurance Tax (HIT) levied as part of the Affordable Care Act. Furthermore, self-insuring your plan gives you more control and discretion as a business owner to approve claims outside of the contract. If you have a tenured employee whose medical treatment would be denied under a fully insured plan, a level funded approach would let you choose if you wanted to cover it anyway as a gesture of goodwill.

Level Funding Example

Level Funded Insurance is a blend of premiums for stop loss mitigation, lower administration fees from a Third Party Administrator (TPA) the company self insures but limits total outlays and receives a refund of premiums if they surpass claims paid.

Partnership Insurance, LLC is an independent full-service insurance agency, offering solutions for businesses, individuals and seniors. We work with the top insurance companies so we can offer our clients the best coverage for them. Our clients are located all across Minnesota and Wisconsin, giving us a great feel for the insurance landscape. We design plans with focus on low out of pocket cost while maximizing our client’s insurance benefits. We accomplish this by providing personalized insurance advice aimed at helping our clients make better-informed decisions regarding their plans.

Level Funded Insurance Coverage

  • TPA Expenses
  • Stop Loss Premiums
  • Claims Paid
  • Premium Savings

Learn More about Level Funded Insurance

Manage Your Benefits to Increase Coverage and Reduce Costs

Our professional team of insurers have experience in Minnesota and Wisconsin and a strong grasp on insurance that meets your business or personal needs and exceeds your service expectations.  Contact us today and find out what Finances Made Simple LLC can do for you.

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  • Brian Lasher
  • Partnership Insurance LLC
  • 10150 City Walk Drive, Suite A2, Woodbury, MN 55129
  • 612-269-2137
  • brian@partnershipins.com
  • https://partnershipins.com

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