Are you an employee benefits advisor searching for the perfect insurance plans to meet your clients' needs? Look no further! In this article, we will explore the advantages of level funded insurance plans, especially for small to mid-sized businesses with a predominantly healthy employee population. By understanding the benefits of level funded insurance, you can make informed recommendations to your clients and help them secure comprehensive coverage while optimizing costs.

What are Level Funded Insurance Plans?

Level funded insurance plans offer a middle ground between traditional fully-insured plans and self-funded plans. These plans are designed for employers who want more control over their healthcare expenses without taking on the full risk of self-funding. With level funded plans, employers pay a fixed premium amount each month, combining the predictability of a traditional plan with the potential cost savings of a self-funded model.

Ideal for Small to Mid-Sized Businesses:

Level funded insurance plans are particularly well-suited for small to mid-sized businesses. These companies often face budget constraints and need to strike a balance between offering comprehensive coverage and managing costs effectively. By opting for a level funded plan, employers can gain more control over their healthcare expenditures, resulting in potential savings compared to traditional fully-insured plans.

Tailored for Healthy Employee Populations:

Level funded plans are most effective when the employee population is relatively healthy. Since the employer assumes some risk for medical claims, healthier employees translate to lower overall healthcare expenses. In turn, this leads to greater savings potential for both the employer and employees. By carefully evaluating the health profile of your clients' workforce, you can determine whether a level funded plan aligns with their needs and goals.

Cost Transparency and Predictability:

One of the significant advantages of level funded plans is the transparency and predictability they offer. Employers pay a fixed monthly premium, which typically includes claims funding, administration fees, and stop-loss coverage. This consolidated payment structure simplifies budgeting and forecasting for businesses, allowing them to plan their expenses more accurately. As an employee benefits advisor, you can highlight this benefit to your clients, emphasizing the financial stability and peace of mind provided by level funded plans.

Potential Cost Savings:

Level funded insurance plans often offer cost-saving opportunities for employers. If claims expenses for a given year are lower than the funded amount, the employer may be eligible for a refund. This aspect allows businesses to enjoy potential savings while still providing quality benefits to their employees. Moreover, with proper utilization management and wellness programs, employers can further optimize costs and enhance the overall well-being of their workforce.

For employee benefits advisors seeking the perfect insurance plans for their clients, level funded insurance plans can be a compelling option. Especially for small to mid-sized businesses with healthy employee populations, these plans offer a balanced approach to healthcare coverage, cost control, and financial predictability. By understanding the unique advantages of level funded plans and assessing the specific needs of your clients, you can guide them towards making informed decisions that benefit both their employees and their bottom line. Embrace level funded insurance plans and unlock a world of tailored benefits for your clients!

I would be happy to answer any questions you may have and provide you with more information about our plans.  You can connect with us today at support@carepathbenefits.com or 1-888-750-0953.