Level funding offers employers another way to finance employee health benefits. It combines the structure of a monthly payment with the potential savings of a self-funded arrangement.
At Universal Benefit Plans, we help you compare level funding with traditional group insurance, ICHRA and other available options—so you understand both the opportunity and the financial responsibilities.
A level-funded arrangement typically combines three components into one monthly payment:
If claims are lower than expected, the arrangement may provide a share of unused
claims funds through a refund or credit. The amount, timing and eligibility depend on the contract; some arrangements require renewal to receive a surplus payment.
The quoting process may involve reviewing employee demographics, health questionnaires or claims information, depending on the program.
Before enrolling, employers should understand the monthly payment, contractual maximum costs, stop-loss protection, surplus rules and responsibilities if the arrangement ends.
Employees generally receive an ID card and use the plan’s provider network. Doctor access, prescription coverage and out-of-pocket costs depend on the specific plan selected.
Level funding may suit employers seeking more predictable payments and potential savings who are comfortable with underwriting and the responsibilities of a self-funded plan.
We help you compare the expected cost, financial exposure, employee coverage and renewal terms before deciding.
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