Level-funding is becoming popular with both large and small employer groups. Simply put, level-funding is self-funding done small. Some carriers offer level-funding plans to employers with as few as five full-time employees, with built-in stop-loss protection that comes into play at a much lower threshold; these plans are often thus referred to as “partially self-funded.”
Because self-funded and level-funded plans aren’t community-rated, a level-funded plan CAN save the employer money… but only if claims stay low enough that the cost-per-employee doesn’t rise as high as (or higher than) community-rated premiums. In other words, only small employer’s with demonstrably healthy employees and dependents should consider level-funding.
BRM can accommodate both traditional self-funded contracts and level funded contracts. We typically see level funded contracts for employer groups under 50 employee lives.