Less than 30% of small employers know about and take advantage of level funded health insurance. This type of insurance product provides a strong vehicle for controlling increasing premiums and creating a sustainable health insurance program.
Health insurance premiums are a calculation based on the expected claims, cost of administration, stop-loss insurance, and agent’s commissions. Control the claims and you control the increases. This is how a level-funded premium plan is calculated.
Why don’t more small businesses use this method?
- They may not know there is an alternative to the fully insured plans
- They may have concerns about additional financial liability
- Their health insurance broker may not have presented this option
What is Level Funded? Level funded health insurance means the cost of the plan is determined by the anticipated claims to be paid on those participating. The premium is the same for every employee. If paid claims are greater than the premium collected, the additional claims are covered through reinsurance protection. The company receives a report showing where their money was used – how much was spent on claims and the type of claim. This type of information can help educate employees on becoming good healthcare consumers and getting the best value for their money.
Medications can be the most expensive part of healthcare. We have been able to work with resources outside the typical framework to source expensive drugs. Drug manufacturers often have programs that will pay most of the prescription cost leaving only a small copay for the patient if the patient’s insurance does not cover the specialty drug. The drug Humira is an example of manufacturer assistance.
Understanding the multitude of health insurance options and creating a program specific to the individual client’s unique situation is what Braden Benefits is known for.
Bring us your situation and let us create a solution. Let’s talk!