Level-Funded vs. FuInsured Group Health Insurance: A Side-By-Side Comparison for Employers

As healthcare costs continue to rise, employers are taking a closer look at how group health insurance plans are structured and priced. Two of the most commonly compared options today are fully insured and level-funded group health plans.

Key Differences Between the Two

Fully insured plans provide simplicity and predictability, while level-funded plans introduce transparency and potential cost efficiencies.

From an employee perspective, both plans often look and function the same. The primary differences occur behind the scenes in how claims are funded and managed.

Why Employers Consider Level-Funding

Employers exploring level-funded plans often want:

• Better insight into claims trends
• More control over long-term cost planning
• A structure that feels familiar while offering additional flexibility

Is Level-Funding Right for Every Employer?

Not necessarily. The appropriateness of a level-funded plan depends on factors such as group size, workforce demographics, financial tolerance, and long-term objectives.

The Value of Professional Guidance

Insurance Solutions USA helps employers evaluate both fully insured and level-funded plans objectively, ensuring decisions are based on education—not assumptions.

If you are considering alternatives to traditional group health insurance or want a clearer understanding of your options, we are here to help.
Visit www.insurancesolutionsusa.com or call 817-756-1442 to speak with a licensed insurance professional.