Seeking a smart insurance strategy which offers stability and predictability is crucial for small and midsize businesses. Thankfully, there is a solution that combines the advantages of self-funding with the security of stop-loss coverage – level funded insurance plans. In this blog post, we will explore how level funded plans can benefit mid-sized organizations with a stable and predictable employee base.

Level funded insurance plans allow mid-sized organizations to experience the benefits of self-funding. By self-funding, companies take on the responsibility of funding their employees' healthcare expenses directly, rather than paying fixed premiums to an insurance carrier. This approach provides greater flexibility and control over healthcare costs, allowing organizations to tailor their plans to meet the specific needs of their employee base.

One of the primary concerns for mid-sized organizations is the predictability of healthcare costs. Level funded plans offer a solution by providing employers with a predictable monthly cost structure. These plans combine a fixed monthly fee with a claims fund, which is used to cover the employees' healthcare expenses. In the event that the claims fund is not fully utilized, the surplus amount is typically returned to the employer, adding another layer of financial stability.

Level funded plans also incorporate stop-loss coverage, which acts as a safety net.  Stop-loss coverage kicks in when an individual or aggregate claim exceeds a predetermined threshold, protecting the company from catastrophic claims. This added layer of security helps mitigate the risk associated with self-funding, making level funded plans an attractive option for mid-sized organizations.

Level funded insurance plans are particularly well-suited for mid-sized organizations with 10-200 employees. These companies often fall into a coverage gap, where traditional fully-insured plans can be expensive and lack customization options, while self-funding alone may pose too much risk. Level funded plans strike the right balance by providing the benefits of self-funding while offering the safety net of stop-loss coverage, creating a smart insurance strategy that aligns with the needs of mid-sized organizations.

In the search for a smart insurance strategy for mid-sized organizations with a stable and predictable employee base, level funded insurance plans are an excellent choice. These plans combine the advantages of self-funding with the security of stop-loss coverage, providing mid-sized organizations with cost predictability, customization options, and protection against catastrophic claims. By opting for a level funded plan, companies can navigate the challenges of providing insurance coverage effectively while maintaining financial stability. So, if you serve midsize organizations and are  looking for an insurance strategy that offers flexibility, control, and peace of mind, look no further than level funded insurance plans.

If you would like to learn more about Carepath Benefits and our turnkey level funded plans connect with me today at mike@carepathbenefits.com or 1-888-750-0953.