Level Funded Group Medical:
A Smarter Alternative to Rising Health Insurance Costs
Fully insured ACA health plans have become increasingly expensive, leaving many employers searching for relief. Level Funded Group Medical coverage offers a practical alternative: predictable monthly costs, the potential for lower rates if your workforce is healthy, and even the chance to share in unused claim dollars at the end of the year.
What “Level Funded” Really Means
In a level funded plan, your monthly payment is divided into three parts:
- Claims Fund – money set aside to pay your employees’ medical claims.
- Stop‑Loss Insurance – protection against unusually high claims.
- Administrative Costs – the carrier’s fee for managing the plan.
Unlike fully insured ACA plans — which have steadily climbed in cost — level funded plans are not bound by many of the ACA’s most expensive mandates. This leaner structure often results in lower premiums, especially for groups with good health histories.
Why Employers Are Making the Switch
- Cost Relief: Fully insured ACA plans have reached a point where many employers find them unsustainable. Level funded plans offer a viable alternative.
- Lower Rates for Healthy Groups: If your employees are generally healthy, your rates can be significantly lower than comparable ACA plans.
- Fewer Mandated Costs: By avoiding certain ACA requirements, carriers can pass savings directly to you.
- Shared Savings: If your group’s claims run well for the year, carriers typically return about 50% of the unused claims fund — a benefit you’ll never see with a fully insured plan.
The Bottom Line
Level funded coverage isn’t just about cutting costs — it’s about regaining control. You get predictable monthly expenses, the chance to benefit from your group’s good health, and a plan design that works for your budget instead of against it.
Let’s Talk
Let’s talk about how Level Funded Group Medical could work for your business. We’ll review your current plan, compare costs, and show you how this alternative can put you back in control of your healthcare spend.
Why Level Funded Coverage Matters
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Health insurance is one of the largest expenses for employers, and traditional fully insured plans have only gotten more costly. Level Funded Group Medical coverage matters because it gives you:
- Predictability — fixed monthly payments that make budgeting easier.
- Flexibility — plan designs that aren’t weighed down by every ACA mandate.
- Potential Savings — lower rates for healthy groups and the chance to share in unused claim dollars.
Your Advantage with The Begley Group
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Choosing the right health plan structure can feel overwhelming. At The Begley Group, we simplify the process by:
- We have over 30 years experience with Level Funded medical plans.
- Analyzing your current plan and claims history.
- Comparing fully insured vs. level funded options side by side.
- Showing you the real numbers so you can make a confident decision.