A level-funded plan is an option for employers looking to shift away from fully insured health care without fully embracing self-insurance. Designed by health insurers, these plans offer two key advantages: consistent cost expectations and the potential for savings, including the possibility of a surplus refund.

Level-funded plans have several benefits for employers:

1. They offer predictability and reduced risks with a fixed monthly fee that covers maximum claims, administrative costs, and stop-loss insurance, ensuring coverage if claims are high.
2. Employers might receive a surplus refund if claims are lower than expected, unlike fully insured plans where the insurer keeps any savings.
3. These plans provide detailed monthly health service usage reports, helping employers manage costs better.
4. They often include programs that boost member engagement and reduce expenses, like wellness initiatives and 24/7 virtual care, making them an affordable option for small businesses.