Fund the plan three ways, and see the cost and the risk of each side by side.
Alternative funding is part of the modern broker playbook. It is also easy to oversell, so we write out the risk with the price.
Three ways to fund a plan.
Each moves risk differently.
Fully Insured
The carrier takes the claims risk for a fixed premium. Costs are predictable and the carrier’s margin is built in.
Level-Funded
A fixed monthly payment covers expected claims, fees and stop-loss, with the possibility of a refund if claims run low.
Self-Funded
The employer pays claims as they occur, with stop-loss protection. Cash flow varies, and so does the opportunity.
How we price them.
Everything against the datum.
Same Census
Each option is priced on the same enrollment.
Cost and Risk
Expected cost, the worst realistic year and what stop-loss covers are shown together.
Plain Terms
No jargon the employer has to decode.
What it takes to choose.
The numbers inform the call. They do not make it.
Cash and Appetite
Can the group carry a bad month, and does it want to?
Data Access
Some funding options depend on getting usable claims data.
Review Each Year
The right answer can change as the group changes.
Questions Employers Ask About This
Which is cheapest?
It depends on the group and the year. The cheapest expected cost is not always the best option once risk is counted.
Can a small group self-fund?
Level-funded arrangements are designed with smaller groups in mind. We tell you what is practical for yours.
Is a refund guaranteed on level-funded?
No. It depends on claims, and terms vary by arrangement.
Related guides.
From Renewals to Results: The Broker Playbook
The full playbook.
Stop-Loss and Claims Risk Before Projected Savings
Risk before savings.
Choosing a Funding Arrangement: Size, Claims and Cash
What fits which group.
Want this applied to your renewal?
Send us the renewal and we will run it through DATUM and show you where the number comes from.
Your renewal letter
Your census
Your current plan documents
Your renewal date
Rough answers are fine. We build the numbers from there.
Laws and rules referenced
Employee Benefit News: Renewals to Results — Opinion piece on brokers moving from plan shopping to data-driven advisory work.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →
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