Level Funded Health Insurance
Level-funding has recently become very popular among small to mid-sized employers with at least 10 employees primarily because it gives employers all of the advantages of a self-funded health plan, but simplifies the administration process.
Well known insurance carriers like Aetna, Cigna, UnitedHealthcare and others all have level-funded health insurance products. Even regional based insurance carriers like SelectHealth offer level-funded health plans in Utah for 51 or more employees. Level-funded health insurance is basically a packaged self-funded policy. These plans are often referred to as “partially self-funded.”
Like self-funded health plans, the employer purchases stop-loss insurance to cover large medical claims thus eliminating risk. Employers receive regular claims reports and if claims are less than expected all or a portion of the money set aside to pay claims is returned to the employer.
Why are Self-Funded Health Plans Popular in States like Idaho, Utah and Wyoming?
Like self-funded health plans, level-funded policies can save employers the most amount of money when claims are kept as low as possible. By utilizing Sterling Urgent Care clinics for their primary and urgent care needs companies have been able to greatly reduce their smaller claims and therfore leave more money in the employer’s claim fund. Sterling Urgent Care clinics are conveniently located in Burely and Idaho Falls, Idaho; Logan, Utah; Afton and Rock Springs, Wyoming.
Another reason Idaho, Utah and Wyoming are particularly good markets for self-funding is because most employers use preferred provider organization (PPO) networks in these states rather than more restrictive health maintenance (HMO) plans. Because PPO policies are based on a fee-for-service model, every dollar saved in claims results in more money being refunded to the self-funded health plan.
For more information regarding level-funded health insurance and how the plan can benefit your company, contact Sterling Insurance Agency.