Let’s Talk About it…
Level-funded and self-funded insurance plans can be found throughout every industry, but small businesses tend to face more funding challenges with health insurance than their larger counterparts.
While by law they aren’t required to offer healthcare to their employees, many small businesses nevertheless feel inclined to do so. Some choose to do it because they want to take care of their employees, which in most cases, when starting a small business taking care of your employees so you can have a strong team is a win-win for both sides of the fence. On the other hand, others may do it to strengthen their recruitment and retention strategies.
However, whatever their intentions may be, small employers who offer health insurance to their workers, know health insurance is still ranked among the most important factors for potential employees in a compensation package.
Fully funded health insurance plans tend to be mighty expensive for small businesses, many seem to be turning to level-funded health plans, which combine with the economic advantages of self-funding.
What Are Level Funded Health Plans?
This health plan is a type of health insurance plan that combines the cost savings and customization of self-funding with financial safety and predictability of fully funded plans. Employers still have arrangements with insurance companies, but with the agreeance of taking on more of the financial risk.
The Benefits for Small Businesses
The primary benefits that have been attracting more small businesses to level-funded health plans are the potential for cost savings, more opportunities for customization, and reduced regulations.