If you’re a business owner frustrated by rising health insurance premiums and limited options, you’re not alone. The traditional small group market can feel inflexible, overpriced, and—let’s be honest—like you’re paying a lot for very little control.

That’s why more employers are turning to level-funded health plans. But what exactly are they—and are they a smart move for your company?

What Is a Level-Funded Plan?

A level-funded plan is a hybrid between traditional fully insured plans and self-funded plans. Here’s how it works:

• You pay a predictable monthly fee that includes administrative costs, stop-loss coverage, and expected claims funding.

• If your group’s claims are lower than expected, you may receive a refund or surplus at the end of the year.

• If claims are higher, your stop-loss insurance kicks in to protect you from going over budget.

The Perks:

✅ Cost Savings – Many employers save 10–20% compared to fully insured plans.
✅ Surplus Opportunities – If your team is healthy, you get money back.
✅ Custom Plan Design – You can tailor benefits more closely to your team’s needs.
✅ More Transparency – You’ll actually see claims data to understand where your dollars go.

The Considerations:

• Not all companies qualify—typically, you need at least 5 enrolled employees and a relatively healthy group. Some insurance companies require more employees.

• Surplus isn’t guaranteed, but we work to model potential outcomes based on your demographics.

• Transitioning to level-funded means some operational changes—but we handle all the heavy lifting.

Why Employers Like It

Level-funded plans strike a rare balance: predictable monthly costs and the opportunity to save if your team’s claims are low. It’s a way to take control without taking on unnecessary risk.

Let’s Explore the Options

We’ve helped dozens of clients successfully transition to level-funded plans—and saved them thousands. If you're curious whether it’s a fit for your business, let’s run the numbers.