Level funded health insurance offers a monthly consistent cost and protection from unexpected claim costs. Plus, you get wellness programs that are built-in that reward employees for engaging in healthier lifestyles.
Unlike traditionally fully insured health plans, your business receives a reimbursement at the end of the year if your claims are lower than expected. When your employees are healthy, you share in the savings. If you experience claims that are higher than you expected, your stop-loss coverage policy kicks in. Stop-loss is coverage that is purchased along with your level funded policy to protect against catastrophic or unexpected loss. A stop-loss policy (also known as excess insurance) allows employers to save money through level funded health insurance, but do not want to assume 100% of the liability. There are two types of:
- Specific Stop-Loss provides protection against a claim on any one individual.
- Aggregate Stop-Loss provides a ceiling on the dollar amount of eligible expenses that an employer would pay during a contract period.
To learn more about level funded options for your business, contact Kamm Insurance Group and we’ll walk you through the options.