Cigna: Level Funding and Graded Funding
Self-funded health insurance plans (a.k.a. “self-insured plans”) have been available to “big business” for decades. In this new age of health insurance for employers, several of the health insurance giants in North Carolina – are offering this wonderful employee benefit – to smaller employers – with as few as 10 employees!
Now, even very small businesses can enjoy the many advantages of self funded health insurance!
Cigna is a pioneer in creating self-funding options for companies with fewer than 250 employees. Their self-funding solutions give companies the opportunity to understand and better manage health care expenses and save money when claims are lower, as well as stop-loss insurance protection for unexpected large claims.
There are two self-funding options:
- Level FundingSM – Financial predictability of fixed monthly payments. Plus, you can potentially receive a credit to put toward future health plan costs, if actual claims are lower than expected at the end of the year.
- Graded FundingSM – You can pay as you go for actual claims. If claims are lower than predicted, your business can save. If claims are higher than predicted, stop-loss insurance can limit your company’s financial exposure.
Choosing to implement a self-funded health plan should not be taken frivolously. However, cost-savings could be very substantial, so take the opportunity now to learn more!
It is very important to perform a risk flow and cash flow analysis to be able to determine whether your company is ready to self-fund. Whatever decision you want to make, ensure you have an expert employee benefits agent to tackle this strategically smart venture.
Talk with THE expert employee benefits agents: WNC Health Insurance – small business health insurance consultants since 1994. Call Now: 828-681-8223