Level Funding (Partial Self Funding) For Groups Down to 5 Employees

Jun 4, 2018

  1. AnnaW
    Offline

    AnnaW New Member

    Posts:
    10
    Likes Received:
    2
    We have Aetna, NGBS in my market. Humana and Allsavers are 10+. Would like some options for 5+ employee groups with stop loss carriers/TPA's to look at.

    Thanks
     
    AnnaW, Jun 4, 2018
    #1
  2. Benefits Guy
    Offline

    Benefits Guy New Member

    Posts:
    8
    Likes Received:
    1
    Starmark (Trustmark) claims they can go down to 5, but I'd be really apprehensive about going self-funded (ok, partially self-funded) with a group that small even if it is level funded. They're in most states, but not all. You'd have to check with them.
     
  3. leevena
    Offline

    leevena Guru

    Posts:
    1,196
    Likes Received:
    103
    Would be interested in knowing why you are hesitant. At what size group would you be comfortable with level funding? Thanks
     
    leevena, Jun 27, 2018
    #3
  4. Benefits Guy
    Offline

    Benefits Guy New Member

    Posts:
    8
    Likes Received:
    1
    Depends on the group. But a group that size has to really convince me that they're financially stable enough and understand the commitment to going level-funded. It's really not so much the concentration of risk over so few lives as long as their contract protects them from shortages at the end of the contract period. They can always revert back to fully insured if their claims are too high. My chief concern is them dropping the plan mid-year (financial hardship, business closure, or just plain flakiness, etc.) and retroactively voiding their stop-loss, which is the way the Starmark contracts work.
     
  5. rcduggan
    Offline

    rcduggan Super Genius

    Posts:
    166
    Likes Received:
    2
    State:
    California
    less than 10 is not cost-effective, period.
     
    rcduggan, Oct 26, 2018
    #5
  6. leevena
    Offline

    leevena Guru

    Posts:
    1,196
    Likes Received:
    103
    Can you be a little more specific as to why you believe it is not cost effective. Are you referring to the carrier or the client? Thank you.
     
    leevena, Oct 26, 2018
    #6
Loading...