For many years, large employers have financed their health insurance programs using the level-funded concept.
This has proven to be the most cost-effective way to pay for healthcare costs while offering their employees a comprehensive benefit program. Amwins Connect Administrators has developed level-funded plans for business owners with under 100 employees so they can reap the benefits of this healthcare funding method with predictable risk.
Employers have the ability to choose from a variety of plan designs to customize the benefits to fit the needs of their employees. Employers are also able to choose a funding option and banking arrangement that best suits their budget and cash flow.
Level-funding is all about choice and flexibility. Level Funded health plans, typically for 5-100 employees, allow employers to pay a preset level 4-tier premium equivalent which includes fixed costs and the maximum claims fund. Because the employer is pre-funding the claims, any unused claims fund at the end of the contract period will be returned to the employer as savings.
With a fully insured plan, the insurance company pays for most of the benefits and offers members small out-of-pocket expenses in the form of deductibles, copays and coinsurance but keeps the profits when the claims are lower than expected. With HealthyAdvantage, the employer pays the benefits up to a higher deductible, but purchases stop-loss insurance to reimburse the plan if the deductible is met.
Level Funded health plans allow employers to pay a preset level premium equivalent which includes fixed costs and maximum claims fund. Since the employer is prepaying the claims, 100% of the unused claim funds at the end of the contract period will be returned to the employer as savings!
When you are evaluating your benefits, ask yourself who should own the claims fund - the employer or a carrier?
For more information, contact sales@gbsio.net
The Healthy Advantage Program utilizes online technology to quote, underwrite and enroll. Please contact your Amwins Connect Sales Team to schedule a demonstration to see how easy level funding can be!
In addition to Healthy Advantage, we also work with all of the carriers' level funded products including Aetna AFA, UnitedHealthcare Level Funded and Cigna Level Funded programs. We can provide information and assist you in getting the right solution that fits the needs of your clients.