Finding the right funding type for your business is more important than ever. Effective cost containment strategies and more predictable and manageable health care expenses are achievable, especially when there are solutions already available.
Level-funded plans continue to pick up steam in the marketplace. According to the Kaiser Family Foundation Employer Health Benefits Survey, 38% of small firms in 2024 reported that they have a level-funded plan, a marked increase from 7% in 2019. The right level-funded plan gives your employees more than just coverage; it provides them with a connected system of tools and support to make smarter choices and stay healthier.
Maximize your investment through level funding
Level-funded plans combine the predictability of fully insured plans with the cost-savings potential of self-insured plans, making it easier to control costs with confidence and create opportunities for additional savings. They provide:
- fixed monthly payments based on a health risk profile
- potential surplus refund
- stop-loss protection which caps risk, even with high claims
- robust, transparent reporting with actionable insights, and
- potential regulatory exemptions from health insurance tax and state mandates that apply to fully insured plans.
Since you can always return to a fully insured plan, level funding can be an appealing near-term cost containment strategy for savvy employers with a team who want to better manage and forecast health care expenses.
Make qualifying for level funding easier
Level funding may not be the best long-term fit for every group. Understanding your workforce’s health risk profile is key to choosing if level funding is right for you. A stable, healthy population will maximize your benefits. This is why it’s important to pinpoint the gaps in your workforce’s health and well-being and consider what changes you can make.
If you’re addressing musculoskeletal issues, consider environmental changes like a standing workstation and behavioral changes like a strength training program. Want to help expectant mothers? Offer a maternal health app that helps them stay on track during pregnancy and create a private space for moms who plan to pump at work. If you’re addressing mental health, consider adding meditation rooms and starting conversations to stop the stigma around mental health.
Maintaining a healthy workforce is crucial to sustaining a level-funded plan annually, and comprehensive population health support resources are designed to keep your employees healthy for the long term.
Take advantage of add-on programs
Many opportunities are often left on the table when it comes to employee health. Plans focused on value incentivize high-quality care at the lowest cost. Holistic support programs (disease and case management, EAP, etc.) ease plan management and proactively keep your workforce healthy and engaged, increasing your eligibility for level funding. Personalized services, digital health tools and services, health and well-being programs – there are so many options for employers and employees to benefit from. Don’t forget the available resources you have to mitigate risk, boost health and reduce avoidable costs.
Compare administrative responsibilities
You’ll have a few more tasks to manage, but the right partner can ease the burden. An experienced benefits administrator can streamline quoting and provide onboarding and ongoing assistance through smart digital tools and hands-on service. They also help support key compliance needs, including ACA reporting, PCORI fees and ERISA requirements. This kind of support can help you navigate and manage these responsibilities effectively, ensuring a smooth experience from plan implementation to compliance.
Prioritize actionable reporting
Choose a plan administrator that provides detailed and transparent reporting. Clear, actionable reporting gives employers insights into care trends, claims and engagement. Comprehensive reporting helps you track spending, spot cost drivers, and make smart decisions about adjusting your plan as needed.
Understanding trends among your employees also lets you better support their health needs to help keep claims costs in check. The right partner helps you turn that data into smarter plan decisions and better member outcomes.
Find out if you’re ready for level funding
If you feel a level-funded plan aligns with your needs and vision for your future, contact your broker or HealthPartners Account Manager for a personalized consultation and detailed analysis.