Level Funding
Level funding is an alternative funding option for clients. A variation of self-funding, this solution is one-of-a-kind in the marketplace. Level funding features preset monthly payments, with a high level of information and control.
How level funding works
With our level funding solution, monthly payments are preset, based on the number of plan participants and total related costs (i.e., claims funding1, premium and administrative fees), allowing you to better budget your resources. Many employers enjoy the greater plan control of level funding and the opportunity to benefit from a positive claims experience through a year-end administrative fee credit.
Advantages of level funding
- Potential administrative fee credit with a positive claims experience.
- Consistent monthly payments for easy budgeting.
- Robust reporting to show group utilization and plan performance.
- Plan design flexibility to accommodate utilization trends, Human Resource needs and healthcare inflation.
- Stop-loss insurance to limit liability.
- No state mandates means clients can provide multiple locations with the same coverage.
Who benefits most from level funding?
A good fit for clients with employees in multiple markets that place a high value on predictable monthly budgeting and still offers the opportunity to save from a favorable claims year. The high level of reporting helps you keep an eye on how health care dollars are spent so you can adjust your plan as the economy shifts and your business grows.
Client Success Story - see how one CIGNA client has benefited from CIGNA's level funding solution
1Claims funding is the maximum claim liability (as determined pursuant to the stop-loss policy).