Alternative Funding
A proactive way to take control of your benefits costs.
It's Like Being Your Own Boss for Your Benefits
Alternative funding and level funding is a different approach to financing employee medical and dental plans. It enables employers (Plan Sponsors) to directly fund their actual claim costs while limiting their risk by purchasing stop-loss insurance. Although it is not for every business, it is worth exploring to see if this solution is right for yours.
With an alternative funding plan, you're taking control of your company's benefits. You can steer the benefits ship in the direction that works best for you and your employees — plus, you get to keep more of your money in your pocket instead of giving it all to the insurance company.
Rewards Good Claims Experience
Alternative funding rewards employers for good claims experience in a way that makes sense for smaller businesses — keeping more of your money in your pocket.
Protected by Stop-Loss
Stop-loss insurance limits your risk, protecting your organization from unexpectedly high claims while you fund your actual claim costs.
Enterprise Advantages, Any Size
A powerful, practical alternative to traditional insurance that lets smaller employers reap the benefits typically reserved for larger employers.
Flexible Benefit Options
Choose from a range of plan designs:
- PPO Plans
- EPO (HMO-like) Plans
- High Deductible Health Plans with an HRA or HSA
- Dual Plan Options
- Referenced Based Pricing plans
Then mix and match variables to fit your team:
Benefits to Members
- Discounted plan management fees
- Flexible plan design to avoid or limit state mandated benefits
- Reduction in taxes – no state premium tax (2-3%)
- Excellent reporting capabilities
- Improved cash flow – no carrier claim reserve required
- More control in claims administration
- Consistent benefit plan communications
- ERISA plan vs. state insurance departments
- Improved service – eliminates bureaucracy
Could self-funding save your group money?
Model best-case, expected, and worst-case annual costs against your current fully-insured plan with our free self-funding viability calculator — then bring the results to your advisor.
Is Alternative Funding Right for Your Business?
Find out if a level-funded or self-funded approach could reduce costs while giving your employees better coverage.