If you’re looking for a solution that will cut costs and maintain consistent benefits for your Small Business clients, then Level Funding might be for you. BPA’s Level Funding helps employers save on the money that goes unused in group health insurance premiums. Level Funding is a unique program that works best for employers with a good health history that feel like they are paying too high of premiums for the benefits that they receive. Under a fully insured plan, the monthly premiums are locked in, even if the group is healthy and has no claims, and the savings are kept by the insurance company. BPA’s Level Funding program, with the smart use of Stop-Loss insurance, puts those savings back in your client’s pocket. Once claims are paid for, all of the unused money is returned to the employer. BPA brokers can offer this self-funded option to groups of 10-200 people. All industries are eligible with the exception of law firms and NEWAs. With key features, competitive rates and an internal pooling point that helps to maximize potential for employer refunds, Level Funding is truly a safe and cost-efficient option for your clients. Contact BPA today for more information.
Key Features 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 to 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 from high claims, which is ideal for small businesses that don’t have large spending margins available.
Need a program to help medium-sized employers keep insurance costs down?
BPA has a Group Captive Program available to help you make it easier for clients to self-insure for employee healthcare! Many large businesses have made the choice to not hand over their money to insurance companies but to self-insure—paying claims directly as they occur. As good as this sounds, many of your clients may find it hard to take this approach due to large claims having too big of an impact on earnings and cash flow. So even though there might be a huge cost savings overall, the cost of this approach varies significantly depending on claims made from year to year. BPA offers a program that allows brokers to give their clients the benefits of self-insurance without all the risk. Because this service allows large claims or a bad year to be partially absorbed by a larger group of employers, their cash out the door is comparable to a full-insured policy. Overall, this gives your client more control of their earnings and cash flow without all the risk.
Why choose BPA’s self-insurance program?
- Cost savings. Save your client a projected 3 to 7% the first year, with potentially compounded savings thereafter.
- Pricing stability. Spread risk for large claims across a large group of employers, all of which are financially motivated to promote lower risk. Projected maximum costs, in a worst-case scenario, are only about 15% above what you’d pay in the fully-insured market.
- Individual control. Your client reaps the benefits of their own actions. About 65% of their cost is based on their individual results. They will have full access to the data they need to improve employee health and drive down claims.
- Seamless transition. Keep their current plan design and providers while continuing to work with BPA for claims administration and access to services.
Stratose is a market leader providing a number of solutions for managing health care costs. BPA has partnered with Stratose to provide cost containment for dental claims. Through this partnership, both the member and BPA will see overall cost savings through the access of Stratose proprietary and affiliate dental PPO partners—a total of 12 different networks. This network is an overlay to your schedule of benefits so no change in plan design is required. The Stratose network utilized by BPA includes 77,000 unique dentists (belly buttons) nationwide, and continues to grow through organic growth of the Stratose dental PPO network as well as the addition of new dental network partners.
Other Stratose Highlights:
• Average discounts obtained through Stratose are approximately 24%.
• 99.3% of claims repriced by Stratose are returned to BPA the same day.
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Self-Funding Information & Real-Life Success Stories:
With the evolving heath benefits landscape, it is increasingly challenging for employers to navigate. Nearly 70% of employees who currently have health coverage are enrolled in some type of self-funding plan, a percentage that is increasing daily. Why? Self-funding plans work. Companies of all sizes and structures are shifting to self-funding plans that offer increased flexibility and benefit customization. To find more information on self-funding and to read real-life success stories, click the link below: