5 Steps How to Save on Group Health Insurance with Level Funded Plans (Easy Guide for Chicago Employers)
In this comprehensive guide, we explore how Chicago employers can utilize level funded plans to achieve predictable monthly costs and significant year-end savings. 5 Steps How to Save on Group Health Insurance with Level Funded Plans (Easy Guide for Chicago Employers) In this comprehensive guide, we explore how Chicago employers can utilize level funded plans to achieve predictable monthly costs and significant year-end savings. For many business owners in the Chicago area, providing high-quality health insurance feels like a balancing act between supporting employees and maintaining a sustainable bottom line. With healthcare costs rising annually, traditional fully insured plans often lead to "premium creep," where you pay more every year regardless of how much your employees actually use the plan. However, there is a better way to manage these costs without sacrificing coverage quality. At Health Estimates , we have spent over 45 years helping local businesses navigate the complexities of employee benefits. One of the most effective tools in our arsenal for saving money is the Level Funded plan . Unlike traditional plans where the insurance company keeps every dollar of your premium even if claims are low, level funded plans offer the potential for a refund. In this guide, we will break down exactly how you can implement these plans to protect your business’s financial health. The Rising Need for Smarter Benefits in Chicago The Chicago business landscape is incredibly competitive. To attract and retain top talent, you need a benefits package that competes with the largest corporations in the city. Yet, small to mid-sized employers often feel they are at the mercy of massive insurance carriers. This is where Health Estimates steps in. We don't work for the insurance companies; we work for you. Our mission is to provide the same level of sophisticated planning to local businesses that Fortune 500 companies enjoy. Level funded plans have become the "gold standard" for employers who want the predictability of a fixed monthly bill but the financial upside of a plan that rewards a healthy workforce. If you are tired of the "use it or lose it" nature of traditional insurance, these five steps will show you the path to significant savings. Step 1: Understand if Your Group is a Candidate for Level Funding The first step toward saving is understanding the mechanics of a level funded plan. Traditionally, smaller businesses were forced into "fully insured" plans where the carrier assumes all the risk but also keeps all the profit. Larger corporations often used "self-funding," which offers huge savings but high risk. Level funded plans are the perfect hybrid between these two extremes. In a level funded arrangement, your monthly payment remains the same throughout the year (it is "leveled"). This payment covers three things: the administration of the plan, stop-loss insurance to protect you from catastrophic claims, and a claims fund. If your employees have a healthy year and don't use the entire claims fund, you get a portion of that money back at the end of the year. This is a game-changer for Chicago employers who have relatively healthy teams but are stuck in community-rated pools where they are penalized for the health issues of other companies. While level funding was once only for groups of 50 or more, today we can often find excellent options for groups as small as 5 or 10 employees. At Health Estimates, we analyze your group’s demographics to determine if this structure is the right fit for your specific needs. You can learn more about our approach on our Group Health Insurance page . Step 2: Utilize EASE Technology to Streamline Administration One of the biggest hurdles to switching or managing insurance plans is the paperwork. Manual enrollment is prone to errors, which can lead to billing discrepancies and wasted money. To combat this, Health Estimates utilizes EASE benefits administration technology . EASE is a powerful, cloud-based platform that brings your entire benefits package into a single, digital portal. By moving your enrollment and management to EASE, you achieve several cost-saving benefits: Reduced Administrative Labor: Your HR team no longer needs to chase down paper forms or manually enter data. Accuracy: Digital enrollment ensures that carrier records match your payroll, preventing you from paying premiums for employees who have left the company. Employee Education: When employees understand their plans better through a digital interface, they are more likely to make cost-effective choices regarding their healthcare. By integrating EASE technology , we make the transition to level funded plans seamless and efficient, allowing you to focus on running your business instead of managing spreadsheets. Step 3: Partner with a Broker Who Represents You, Not the Carrier Many business owners make the mistake of going directly to a single carrier or working with a "captive" agent who only offers one or two options. To truly save, you need a broker who has access to the entire market. Health Estimates maintains strong, long-standing partnerships with the industry’s leading providers, including: Blue Cross Blue Shield (BCBS) Aetna MetLife Principal UnitedHealthcare (UHC) Because we have 45+ years of experience and a deep understanding of the Chicago market, we know which carriers are currently offering the most competitive rates for level funded plans. We take your data and shop it across these major carriers to find the best possible price-to-benefit ratio. Remember, our loyalty is to the client. We negotiate on your behalf to ensure the carrier's stop-loss rates and administrative fees are as low as possible. Our experienced team acts as your external HR department, providing personalized service that you won't find at a giant, impersonal brokerage. Step 4: Analyze Claims Data and Adjust Plan Design In a level funded plan, information is power. Because these plans are more transparent than traditional ones, you receive reports on how your claims fund is being used. This data allows us to identify trends and adjust your plan design to save money. For example, if we notice a high volume of expensive ER visits for minor issues, we can implement an educational campaign through EASE to encourage the use of Urgent Care or Telehealth. These small shifts in employee behavior can save thousands of dollars in the claims fund, which ultimately ends up back in your pocket at the end of the year. We don't just set up your plan and walk away; we monitor it throughout the year to ensure it is performing optimally. This proactive approach is a hallmark of our service at Health Estimates. Step 5: Capitalize on Year-End Refunds and Lower Taxes The final step in saving with level funded plans is the actual "payday." At the end of the plan year, if your claims are lower than what was budgeted in your "level" monthly payments, the insurance carrier returns a percentage of the surplus to you. In a year where your team is particularly healthy, this can result in a significant windfall that can be used to offset next year’s premiums or reinvested back into the business. Furthermore, level funded plans often have lower premium taxes compared to fully insured plans. Because a large portion of your monthly payment goes into a claims fund rather than a pure premium, the state taxes applied to those funds are often reduced. For a Chicago employer, these savings can add up to a substantial amount over time. When you combine the tax advantages with the potential for a surplus refund, it is easy to see why so many businesses are making the switch. The Health Estimates Advantage: 45 Years of Excellence Choosing the right insurance plan is only half the battle; choosing the right partner to manage it is the other half. At Health Estimates , we pride ourselves on being more than just brokers. we are consultants and advocates for the Chicago business community. Our deep roots in the area mean we understand the local hospital networks, the specific needs of Illinois employees, and the regulatory environment of the Midwest. When you work with us, you aren't just a number in a database. You get personalized service that looks at your entire benefits strategy, from dental and vision through providers like MetLife and Principal, to your core medical through BCBS or Aetna. We ensure every piece of your benefits package works in harmony to provide the best value. Ready to Start Saving on Your Group Health Insurance? The path to lower premiums and better benefits starts with a simple conversation. You don't have to settle for the standard annual increases that have become the norm in the insurance industry. By embracing level funded plans and the technology provided by EASE, you can take control of your healthcare spend and provide your employees with the security they deserve. Whether you are a small startup or an established firm with hundreds of employees, Health Estimates is here to guide you through every step of the process. Our 45+ years of experience and client-first philosophy ensure that you are getting the most expert advice available in the Chicago market. Don't wait for your next renewal period to start feeling the sting of rising costs. Take a proactive step today and see how much your business could be saving. You can get a customized analysis by visiting our Business Quote page or by contacting us directly to speak with one of our benefit specialists. Explore more about our services and how we can help your business thrive: Get a General Quote Small Business Quote Options Read More from our Blog Visit our Homepage At Health Estimates, we believe that every Chicago employer deserves a health plan that works as hard as they do. Let us show you the level funded difference and help you secure the future of your company’s benefits program.