Level-Funded Health Plans in Bloomfield Hills for Growing Employers
Many small and mid-size employers want more control over health costs, but they cannot handle big swings in their monthly bill. Level-funded health plans in Bloomfield Hills are one way to get some of the benefits of self-funding while keeping a steady monthly payment.
We are CFH Insurance Consultants, an independent employee benefits consulting firm on Woodward Avenue since 2007. No carrier owns us, so we can compare level-funded plans with fully insured options and show you the trade-offs.
Level-Funded Health Plans
A level-funded plan is a type of self-funded plan with a fixed monthly payment. That payment covers three things: expected claims, the cost to administer the plan and stop-loss insurance. Stop-loss protects you if claims run much higher than expected.
At the end of the plan year, the numbers are settled. If claims came in low, some plans return part of the unused claims money or give a credit. If claims ran high, stop-loss protects you for that year, but your next renewal may go up. Every contract is different, so we read the fine print with you.
We compare level-funded offers from carriers Michigan employers use, such as Blue Cross Blue Shield of Michigan, Priority Health, UnitedHealthcare, Aetna and Cigna. We explain each one in plain words. After you sign, we hold the administrator to its contract and help your employees when questions come up.
Is level-funded health insurance good for a small business?
It can be. In Michigan, groups of 50 or fewer employees are small group. Their fully insured rates are set by carrier filings, ages and ZIP codes, not by the group’s own claims. A healthy small group may pay less with a level-funded plan, because its own claims history helps set the price.
It is not right for everyone. Some carriers ask for health information about employees before they will quote. A group with serious ongoing health costs may do better staying fully insured. We help you look at both sides before you decide.
What happens at renewal on a level-funded plan?
At renewal, the carrier looks at your claims from the past year. A good year can lower your cost. A hard year can raise it, sometimes more than a fully insured renewal would. That is why we start early. Most January 1 renewals arrive in October or November, and a head start gives you room to compare.
Common questions
Is a level-funded plan the same as fully insured?
No. It feels similar because the monthly bill is steady. But it is a form of self-funding, and it comes with its own federal ERISA duties. We help keep you ERISA compliant. Those duties include a plan document, a summary plan description and, at 100 or more participants, a Form 5500. The contract also decides who pays claims incurred before it ends but paid after.
Can employees keep their doctors?
Often, yes. Many level-funded plans use a large carrier network. We check the network against your employees’ doctors before you switch. We check by name and location, for the doctors and hospitals your employees actually use, rather than relying on a general statement that the network is large. Where a level-funded option rents a different network from the carrier’s fully insured plan, the differences show up here.
Do you work with employers outside Bloomfield Hills?
Yes. We help with level-funded health plans in Bloomfield Hills, Troy, Novi, Rochester Hills and across the whole state of Michigan.
Talk to us about level-funded health plans in Bloomfield Hills
Send us your renewal or book a 30-minute call, and we will show you whether level funding fits. Our office is at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304. Call 248.370.8853.
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