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UNDERSTANDING LEVEL FUNDING: PREDICTABLE COSTS, FLEXIBLE COVERAGE What is Level Funding?How Does Level Funding Work?Level funding is a type of health insurance that blends the cost-saving perks of self-insurance with the predictability oftraditional insurance. Think of it as a “best of both worlds”option for employers. Employers pay a fixed monthly amount, making budgetingeasier, while still having the opportunity to save money ifhealthcare claims are lower than expected. It’s a flexible,balanced option that offers more control over costs withoutsacrificing stability.Every month, the employer pays a fixed fee to an insuranceprovider or third-party administrator (TPA). This fee covers: 1.Expected Claims – Based on projections of how muchemployees might use their health benefits. 2.Admin Fees – For things like billing, customer service, andclaims processing. 3.Stop-Loss Insurance – A safety net that protects theemployer if claims go way over the expected amount. Even if claims are higher or lower than expected, the monthlypayment stays the same for the whole year. What’s Included in theMonthly Payment?Your monthly payment under a level funded health planincludes three key components: Claims Funding + Administrative Fee + Stop-Loss Premium= Total Monthly Payment This amount is fixed for 12 months, regardless of how muchyour employees use their benefits. Employers typically collectpart of this cost through pre-tax payroll deductions. And ifclaims go over the expected amount, stop-loss insurance kicksin to protect your business from unexpected expenses. The Level Funded Advantage Level funded health plans offer a compelling solution foremployers who want more control over their healthcarespending without sacrificing quality coverage. Withpredictable monthly costs, the potential for savings, andaccess to valuable claims data, these plans strike a strategicbalance between flexibility and financial stability. Whetheryou're a growing business or simply looking for a better wayto manage benefits, level funding could be the competitiveedge your organization needs. Ready to take control of your business's healthcare costs? Let’s explore how level funded plans can bring flexibility,savings, and stability to your team and your bottom line.