Level-funded surplus refund calculator: what could come back at year end?
Enter your annual level-funded payments, stop-loss premium, fees, actual claims and the refund share to estimate the surplus and the refund. Built for employers with or considering a level-funded plan.
Estimate a level-funded surplus refund.
Refund terms vary by contract. The result updates as you type.
Set by your contract. Some contracts refund nothing.
Your estimate
An illustration from the terms you enter. Your contract controls refunds, shortfalls and run-out.
How does a level-funded plan work?
A level-funded plan is a form of self-funding in which the employer pays a fixed monthly amount that covers expected claims, stop-loss insurance and administration. If claims come in below the claims fund, the contract may refund part of the surplus to the employer. If claims run higher, stop-loss protects the employer from large losses, and the contract sets what the employer owes.
What should an employer check in the contract?
Check the refund percentage, the run-out period, whether refunds are paid at all, how the plan treats a shortfall, and the stop-loss terms. Ask how the next year payment is set after a good or bad year. Compare the net cost, not only the monthly payment, when you evaluate level-funded against a fully insured plan.
Common questions
Do all level-funded plans pay refunds?
No. Some return a share of the surplus and others return nothing. Read the contract.
When is a refund paid?
Usually after a run-out period at the end of the plan year, since late claims still have to be paid.
What happens if claims are high?
Stop-loss limits large losses. The contract says what the employer pays, and next year payments may rise.
Is level-funded right for us?
It depends on group size, risk tolerance and health status. We can compare it with your current plan.
Talk to us about funding options
Book a 30-minute call and we will look at your claims, your risk tolerance and the funding options that fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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