As the landscape of employee benefits continues to evolve, level funded health insurance stands out as a compelling option, aligning cost savings with enhanced employee satisfaction and improved healthcare outcomes. Embracing this opportunity to offer your clients a comprehensive and forward-thinking approach to employee benefits planning can be a huge win or the exact opposite.

Transitioning from a fully insured health insurance product to a level funded plan requires communication, careful planning and even more communication for you and your client. Following a process when helping clients make the transition helps to ensure level funding is a good fit and the entire client population understands the process.  The last thing anyone wants is to make the move and find it was not the right fit.  In order to navigate the transition as seamless as possible start with the below process:

Client Assessment: 

Conduct a thorough analysis of the client's current health plan, including claims history, employee demographics, and financial goals. Evaluate whether a level funded plan aligns with their specific needs and budget.  If it does not fit; STOP.  Not every client is a fit for level funding.  Serve your client how they need to be served. 

Educate the Client: 

Explain the differences between fully insured and level funded plans, emphasizing the benefits and potential risks. Address any concerns the client may have and be prepared to provide comparative data.

Obtain Employee Buy-In: 

Communicate the transition plan to employees in a clear and transparent manner. Emphasize the advantages of the new plan and how it will positively impact their healthcare experience. Use examples to show how they now have direct control over how their spending impacts their cost.  It is no longer the, ‘blank check today and expect to pay more next year at renewal’.

Educate the Client (more): 

Yes, this was listed before, do it again and again.  Explain the differences between fully insured and level funded plans, emphasizing the benefits and potential risks. Address any concerns the client may have and be prepared to provide comparative data.

Choose the Right Carrier: 

Partner with reputable insurance carriers that offer competitive level funded plans with comprehensive stop-loss coverage. Evaluate carrier performance and service quality.

Monitor Progress:

Regularly assess the performance of the level funded plan, review claims data, and make necessary adjustments to ensure continued success.

Transitioning a client from a fully insured health insurance product to a level funded plan can be a transformative step toward better cost control and customized benefits. By understanding the unique advantages of level funded health insurance and navigating the transition process strategically, employee benefits advisors can provide their clients with optimal solutions for long-term success.

If you are interested in learning more about the Carepath Solution or helping a client make the transition to level funding reach out at mike@carepathbenefits.com, I would be happy to help.