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Level-Funded vs Traditional Insurance: Which is Better for Your Small Business?
While traditional health insurance rates continue to increase, in most cases well over 10% every year, small businesses are finding out there is a better, much more affordable way. Level-funded health plans offer significant cost savings right from the start. Even better: they allow for opportunities to REDUCE plan costs down the road, even as traditional rates rise.
Level-Funded Health Plans Put You in Control
Traditional health insurance plans are governed by someone else – the insurance company and/or the federal government. Level-funded health plans are owned by you, which means you’re in control. By being able to monitor claims and how employees use the plan, you can save even more!
Money Left Over from Claims is YOURS
When utilizing plans through traditional health insurance, any money left over in the claims fund at the end of the policy period is kept by the insurance company. Level-funded benefits allow you to retain those funds at the end of your policy period instead of losing them. After all, it is your money. And if it isn’t used up on eligible claims, shouldn’t you be the one to decide what happens to it? When you choose level-funded, you can.
Benefit Costs Become a Company Asset
In traditional health insurance, your money is given to the insurance company – taking it away from your business and leaving you unable to categorize those funds as an asset in your small business. With level-funded health plans, you’re in control of your claims fund, which means you can now list those funds as a company asset. Increasing your asset pool allows for more opportunities to grow your company and reap financial benefits large corporations experience.
Gain More Control Over Your Rates
Traditional health insurance premiums are determined by national averages. This means rates for a healthy person are drastically increased due to the number of unhealthy plan users across the country. Level-funded benefit costs are determined based on your company, rather than the health of the entire nation. This company-focused rating approach allows for small businesses to gain access to truly affordable health benefits. And when your employees make smart decisions on choosing how and when to receive care, they drive claims costs down, further increasing your company’s savings overall.
Level-funded benefits are the missing piece of the puzzle you’ve been looking for. With level-funding, you’ll enjoy decreased benefits costs, just as though you were running a large corporation. Choose level-funded health plans, and let your small business grow and financially succeed.