Level-Funded Health Plans
Level-funded health plans offer small and mid-sized businesses the perfect balance between cost control and quality coverage. These plans combine the budgeting stability of traditional insurance with the flexibility and savings potential of self-funding—without the risk of large, unexpected claims.
At Nexus Insurance Advisors, we help South Jersey businesses take advantage of level-funded plans to provide meaningful health benefits while keeping expenses in check.
What Is a Level-Funded Health Plan?
A level-funded health plan is a type of group insurance that gives small and mid-sized businesses more control over their healthcare costs while still offering robust employee benefits. With this setup, your business pays a fixed monthly amount that covers three components: expected claims funding, administrative fees, and stop-loss insurance to protect against high-cost claims. Unlike traditional fully insured plans, if your employees’ claims end up being lower than projected, your business may receive a refund at the end of the plan year. It’s a smart, predictable way to manage costs while still providing access to quality care and nationwide provider networks.
Key Advantages of Level-Funded Plans
Fixed Monthly Payments – Know exactly what you’ll pay every month
Potential Refunds – Keep money that isn’t used for claims
Claims Transparency – Understand how your healthcare dollars are spent
Customizable Plans – Design benefits to match your employees’ needs
National Networks – Access to major carriers and top providers
Benefits of Level-Funded Plans
Level-funded plans can lead to lower overall costs for your business, especially if your employees are generally healthy. You’ll enjoy the potential to receive a refund on unused claims dollars, giving you a real financial incentive to manage wellness. These plans also provide access to detailed reporting and claims data, so you can make more informed decisions about your benefits strategy. They are customizable, allowing you to design a plan that truly fits your team's needs. And most importantly, they come with built-in protection through stop-loss insurance, limiting your financial risk.
Is a Level-Funded Plan Right for You?
Level-funded plans aren’t one-size-fits-all—but for many small and mid-sized businesses, they strike the perfect balance between affordability, flexibility, and employee satisfaction. These plans are especially valuable for employers who want more insight into their healthcare spending and the potential to save money over time, all while offering competitive benefits to attract and retain talent.
They may be a great fit if:
You have 2 to 50 employees
Your team is generally healthy and low-utilization
You want predictable monthly costs
You're looking for potential refunds on unused claim funds
You prefer greater transparency and flexibility in your health plan
Let’s Talk
We specialize in helping local businesses explore level-funded plans and other group health options. Whether you're starting from scratch or looking to improve your current benefits, Nexus Insurance Advisors can guide you every step of the way.
📍 Based in Cherry Hill — proudly serving South Jersey and beyond!
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We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800 MEDICARE to get information on all of your options.