If a CHOICE Arrangement isn’t the right fit, a level funded group plan gives healthier groups predictable monthly costs, claims transparency and a potential year-end refund.
Alternative Option
Some employers want a traditional group health plan with better cost control. Level funded plans offer predictable monthly costs, protection against large claims, and potential refunds when claims are lower than expected.
We compare level funded plans and CHOICE Arrangements side by side so you can see the costs, benefits, and tradeoffs before deciding.
Unlike fully-insured group plans, level funded plans charge a fixed monthly amount covering expected claims plus stop-loss insurance — you know your max cost upfront.
If your group is healthier than projected and claims come in below your funded level, many carriers return the unused portion at year-end.
Unlike fully-insured plans, level funded arrangements give employers visibility into aggregate claims data — information that helps you make smarter benefit decisions.
Level funded plans often allow more plan design flexibility — different deductibles, HSA compatibility, and benefit structures that fully-insured small-group plans don’t always permit.
Cost Predictability
Level Funded: Fixed monthly funding amount
Fully-Insured: Fixed premium, but steep annual renewals
Claims Surplus
Level Funded: Potential year-end refund
Fully-Insured: Insurer keeps all surplus
Underwriting
Level Funded: Required — rewards healthy groups
Fully-Insured: Community-rated in small group
Claims Transparency
Level Funded: Aggregate data access
Fully-Insured: No employer access to claims
Stop-Loss Protection
Level Funded: Included — caps catastrophic risk
Best For
Level Funded: Healthier groups who want group-style admin
Fully-Insured: Groups that can’t pass underwriting
Common Questions
Level funded plans work well when your workforce skews healthy and you can pass underwriting. They offer group-style administration with more cost predictability than traditional fully-insured plans and the potential for year-end refunds. We model both side by side so you can make an informed choice.
Keep Exploring
More on how CHOICE Arrangements and our services can work for your business.
How the new federal name for ICHRA works: a fixed monthly allowance, employees pick their own plan, reimbursements are tax-free.
A side-by-side look at budget control, plan choice, renewal risk and participation rules.
Benefit design, employee enrollment and year-round support from a dedicated advisor.
