December 29, 2025
Agency
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.
| Feature | Fully Insured | Level-Funded |
| Monthly Cost | Fixed premium | Fixed monthly payment |
| Claims Risk | Insurance carrier | Employer (with stop-loss protection) |
| Claims Transparency | Limited | Greater visibility |
| Potential Refunds | None | Possible, depending on claims |
| Administrative Experience | Similar | Similar |
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.
Categories: Blog