Help Small Employers Save on Group Health Insurance

Looking for a cost-saving solution for your small employers?

BPA offers a self-funded option called Level Funding to help you provide this solution to employers with good health experience.

 

Level Funding is a unique program that is a best fit for employers with good health experience who feel they are paying too much for premium for too little in benefits.  Under a fully insured plan the monthly premiums costs are locked in.  Even if the group is healthy and has no claims, the savings are kept by the insurance company.

With Level Funding, and the smart use of Stop Loss Insurance, the employer pays a monthly cost that is the maximum cost.   An especially attractive feature for your clients is after all claims are paid for the year, any unused money in the claim fund is returned to the employer.

BPA is making this available for brokers to offer for Group sizes of 10 -200 lives.  All industries are eligible with the exception of law firms and MEWAs.
With key features of competitive rates, an internal pooling point that helps to maximize potential for employer refunds, this is truly a safe and cost-efficient option for your clients who want to self-fund their healthcare program and manage their costs effectively.

This is also an ERISA plan that is exempt from some of the new ACA regulations, particularly those that may cause fully insured premiums to climb substantially in 2014

What are the key highlights of Level Funding?

  • Defined and Contained Risk – The employer’s maximum exposure and annual costs are determined up front through the purchase of Stop Loss insurance.  Standard provisions include coverage for claims paid after the end of the plan year (no terminal liability exposure).
  • Stabilized Cash Flow – Maximum annual claim liability is equally spread over 12 months.  If the employer’s claim fund does not contain sufficient money to cover claims, the Stop Loss insurance coverage will advance the necessary funds (also referred to as “Accommodation”).  No requests for additional money from the employer are made.
  • Claim Fund– After the claim run-out period remaining funds are released or rolled over the next year as credit.  This is the essence of alternative funding – money not spent on benefits remains with the employer’s benefit plan, not the insurance company.
  • Predictability-  Your client will be able to predict the exact  level of  monthly costs with no extra charges if there are high claims.