Level Funding has emerged as a viable option for businesses that provide health insurance to at least 50% of their personnel and with savings of 15%-35%.
Level-funding, a self-insurance hybrid, enables companies to benefit from the regular and predictable cost of a fully insured plans, while only paying for the healthcare costs actually incurred by employees. This approach can potentially provide a 20 to 35 percent annual refund on health benefit costs. With level-funding, employers pay a set amount each month to a healthcare services company to cover administrative costs, fees and embedded stop-loss insurance. Stop-loss insurance provides a financial buffer for the employer if an employee is found to have exceedingly high medical costs.
Companies put aside enough cash to cover anticipated claim expenses, and the monthly premium remains level for the entire year. If claims are less than the funded amount at the end of the year, a rebate or credit is issued. If claims go over the funded amount, companies are protected by the
Each state and insurance company has it own set of regulations and employee minimum count. We are extremely fortunate that the State of Florida has led the way to offer plans for small to medium size employers. Silverstein HR Inc. represents several insurance companies that are aggressively pursuing
level funded health insurance. Howard Silverstein, our President, has earned the NAHU Self-Funded Certification and has the expertise to properly advise our present and future clients.