Level-Funded Health Plans
At Nexus Insurance Advisors, we specialize in helping small businesses across Cherry Hill, Camden County, Burlington County, and Gloucester County find smart, affordable employee benefits. One of the most valuable options we offer is a level-funded health plan. These plans combine the stability of traditional group health insurance with the cost-saving potential of self-funding, giving you more control over your healthcare budget without sacrificing coverage.
What Is a Level-Funded Health Plan?
A level-funded plan is a group health insurance option where your business pays a set monthly amount. That payment covers your employees’ expected medical claims, stop-loss insurance to protect you from high-cost claims, and administrative services to manage the plan. If your group’s claims are lower than expected, you may receive a refund at the end of the year. If claims are higher, stop-loss insurance kicks in to cover the difference. This structure gives you the predictability of a fixed cost with the flexibility and potential savings of a self-funded model.
How Level-Funded Plans Work
With a level-funded plan, you pay the same amount each month, which makes budgeting easy. A portion of that payment goes into a fund to pay for your employees’ healthcare expenses. Another portion pays for stop-loss insurance, which protects your business from large, unexpected claims. The rest covers administrative costs. At the end of the year, if your claims are lower than expected, your business may get money back—making it a win-win for your company and your employees.
Benefits of Level-Funded Plans
Level-funded plans can lead to lower overall costs for your business, especially if your employees are generally healthy. You’ll enjoy the potential to receive a refund on unused claims dollars, giving you a real financial incentive to manage wellness. These plans also provide access to detailed reporting and claims data, so you can make more informed decisions about your benefits strategy. They are customizable, allowing you to design a plan that truly fits your team's needs. And most importantly, they come with built-in protection through stop-loss insurance, limiting your financial risk.
Is a Level-Funded Plan Right for You?
If you have between 2 and 100 employees and you’re looking for an alternative to expensive fully insured plans, a level-funded option may be a perfect fit. These plans are ideal for businesses that want greater transparency, budget predictability, and the chance to share in the savings when employees use less care. Whether you're renewing your current coverage or exploring employee benefits for the first time, our team will help you compare options and make the right choice.
Talk to a Local Benefits Expert
At Nexus Insurance Advisors, we understand the challenges small businesses face when choosing the right health insurance. We're proud to be a trusted group health insurance broker in Cherry Hill, NJ, helping businesses throughout Southern New Jersey find coverage that works. Let us help you decide if a level-funded group health plan is the right move for your team.
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We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800 MEDICARE to get information on all of your options.