Level funding is an option that can accompany a self-funded plan, aiding employers in their health coverage budgeting efforts. With level funding, employers pay a set monthly amount to a carrier. The amount typically includes the cost of administrative and other fees, the maximum amount of expected claims based on underwriting projections, and embedded stop-loss insurance. This is different from Fully insured health plans.
Level funding offers several advantages. Like other self-funded plans, you don’t have to pay premiums that are based on community rates,