Level funded health plans put the employer in the position to effectively become their employees’ insurer, without some of the risks associated with becoming completely self-insured. While similar to a self-insurance plan, level funded insurance allows you (the employer) to control cash flow by splitting your payments up among three distinct buckets: admin fees, stop-loss insurance, and cash set aside for claims. As someone who’s not deeply ingrained in the HR world day in and day out, you might not be aware of the fact that you can, in fact, customize your employees’ health care plans. Level funding is one of several ways to do so.
There are numerous benefits to level funded insurance including the opportunity to save money should your claims add up to less than the amount you’ve set aside to cover them, as well as the flexibility to design your own plan. Let Allay help you sort through the pros and cons and find the health care plan that works for you.