Employer insurance plans are an essential part of many benefit packages. Most employers are familiar with fully insured plans (Blue Cross Blue Shield, United Healthcare, Cigna, Aetna)  in which they pay a premium to an insurance carrier to provide employees with coverage. Employers pay that monthly premium whether employees use the insurance or not.  This used to be the norm, but many businesses are now crossing over to self-funded and level-funded health insurance plans. With these forward thinking options, employers maintain a pool of money to cover claims filed by employees. Here are the advantages of these plans for your business.  

What Your Business Needs a Level-Funded Benefits Plans

1. Greater Plan Flexibility

You want your employees to be happy with their plans, and level-funded options offer flexibility. These health insurance plans allow you to tailor coverage to your employees’ unique needs. You’ll be able to work closely with an insurance agent or third-party administrator to choose from a wide scope of details, such as prescription medication coverage, maternity leave coverage, and outpatient copays, so that employees have a plan that truly works for them.

2. Better Money Management

With traditional plans, employers pre-pay for health insurance premiums and potential claims. Self-funded options only require you to pay from your money pool as claims are placed by employees. This means you’re only spending money as it needs to be spent, giving you more options for managing your cash flow in the meantime.

3. Lower Overall Costs

In general, self-funded and level-funded plans will save you money. You only pay for the actual cost of medical expenses.

 You may also avoid state health insurance taxes and user fees that come with securing traditional coverage. 

Now is the time to stop managing your premiums and start managing your claims!

If you’re interested in setting up a elf-funded or  level-funded health insurance option for your employees, contact Gwen King Insurance of Nibley, UT. Insurance agent Gwen King has over 20 years of industry experience serving Utah-Nevada and Idaho area and will help you navigate your employee benefit packages, compliance issues, along with HR assistance. Call (385) 347-2172 to request a quote, or visit the website to learn more about your insurance options.