As healthcare costs rise, more small employers are turning to level funded plans

“Carriers assess member risk using their proprietary and company data to price or even decline to quote so that employers shouldn’t (and usually can’t) see individual medical info,” said Robert DeNinno, Principal at Philadelphia-based healthcare benefits brokerage firm Precision Benefits Group. “The carriers determine the risk.”

In this article by Gene Marks, CPA, DeNinno discusses how level-funded health plans are helping small and mid-sized employers manage rising healthcare costs. The piece explains how these hybrid plans combine the predictability of fully insured coverage with the cost-saving potential of self-funding, making them an attractive option for businesses with healthy employee populations. It also highlights both the advantages such as potential refunds and transparency and the challenges, including regulatory oversight and fluctuating stop-loss premiums.

 Read the full Philadelphia Inquirer Article.