Level-funded health plans offer small and mid-size businesses a smarter way to provide group health insurance — with fixed monthly costs, potential refunds, and better control over your benefits spend.
What Is a Level-Funded Health Plan?
A level-funded plan combines the predictability of traditional group health insurance with the cost-saving potential of self-funding. Each month, you pay a fixed amount that covers:
- Claims fund: A pool for employee medical claims
- Stop-loss insurance: Protection against catastrophic claims
- Administration fees: Third-party administrator and network access
If your employees use less healthcare than expected, you get a refund on the unused claims fund — something you never get with fully insured plans.
Level-Funded vs. Fully Insured
Who Is a Good Fit?
- Businesses with 5 to 100 employees
- Companies with a generally healthy workforce
- Employers tired of 8-15% annual premium increases
- Business owners who want more control over benefits spend
Frequently Asked Questions
Is my risk capped with a level-funded plan?
Yes. Stop-loss insurance is built into every level-funded plan, capping your exposure both per employee and in aggregate. You’ll never pay more than your maximum liability, which is known upfront.
What happens if claims exceed the fund?
The stop-loss insurance covers excess claims. Your monthly payment stays the same regardless of claim activity during the plan year.
Can level-funded plans work alongside our retirement benefits?
Absolutely. Many of our clients bundle level-funded health plans with 401(k) or other retirement plans as part of a comprehensive employee benefits package. This approach maximizes tax efficiency and employee satisfaction.
Get a Free Health Plan Quote
See how much your business could save with a level-funded health plan. No obligation.
My credential is in retirement plan fiduciary standards — which means I am professionally and ethically obligated to give you accurate information, not advice that benefits me.
In 15 minutes you will know your exact fine exposure, your SECURE 2.0 credit eligibility, and every option available to you — including ones that have nothing to do with my services.
Then you decide. No follow-up pressure. No obligation. Ever.
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