level-funding You’ve adopted an increasingly popular new health plan strategy to save money on costs – why would you want to give up half of your plan savings to the company managing your plan? That’s what’s happening to some employers who may be unaware that their plan administration firm has incorporated this 50/50 savings split into their new level-funded health plan contract. At Diversified Group, we believe that you are entitled to ALL of your plan savings and return 100% of your remaining funds to you. Our plan experts can show you how these important differences can impact your benefits costs and your bottom line.

What is level funding?

Level funding is an increasingly popular health benefits option that combines the ease and simplicity of a fully-insured plan’s predictable monthly fees with the flexibility and cost saving potential of a self-funded plan.  More and more companies are adopting this approach because of the significant advantages a level-funded program can provide to an employer who is looking to control costs while delivering excellent benefits coverage:

  • Established monthly fees limit your financial exposure and cover plan risk, while providing the potential for plan savings if health claims are lower than expected
  • You can tailor plan designs to meet the needs of your employee population, as well as your budget – while monthly reports allow you to identify areas to be targeted for plan adjustment and employee education
  • You are able to offer a high quality plan that incorporates the preventive care and wellness programs you expect from a fully-funded plan, at a much lower cost
  • Because this is a self-funded hybrid offering, you are not subject to the Health Insurance Tax (HIT) levied as part of the Affordable Care Act

That’s the good news about level funding. However, many folks have been disappointed when they discover that some administrators keep half their money.

Keep your cost savings in your own company’s bank account. At Diversified Group, we believe in plan transparency. We will ensure that your self-funded and level-funded strategies deliver the highest quality health care to your employees, combined with the greatest possible plan savings to your business – plan savings that are returned to your business in full.

To learn more about the many different level-funded and self-funded health plan products we can offer you, contact a Diversified Group Plan Expert today at (888) 322-2524, ext. 526.