Level Funding & Self Insured Plans
The newest strategy in health insurance plan design is level funding. This is available to groups with as few as 15 enrolled employees and works up to about 150 enrollees. The primary driver of these new plans is to allow groups with a younger and healthier employee base to use a “limited” self-insured plan to avoid many of the costly ACA rules.
By using one of these new plan designs you can get away from community rating and full guarantee issue with no-pre-existing conditions or the ability to base premiums on the medical risk of your group. While this may not work for many companies, for those it does premiums can be greatly reduced and you have the flexibility to design a plan that works for you not the Government.
Even better, the plans look and work like a fully insured health plan. That means you have set premiums based on your initial enrollment capping your maximum costs. The difference is your premium is broken into two components, fixed costs (administration and reinsurance) and claims costs. The claims cost is a bucket of money set aside to pay your employees claims. In many of the policies if your group does not spend all this money over the course of a year, you get all or some of it back.
If you think your group is healthier than most, you should definitely look at this option. Contact us today for more information and pricing for your company. Call us at 615-724-1699 or email.