What you need to know

About level-funded health plans

Why level-funding for small businesses?

For years, large organizations have used self-funded health plans to provide coverage for their employees. In this model, employers set money aside to pay employee healthcare claims. Because these plans take into account the health of each employee and avoid some of the red tape associated with traditional insurance, they typically cost less for employers and employees.

While self-funding may make sense for large organizations that can manage month-to-month swings in employee healthcare costs, they can be risky for smaller enterprises. That’s why small businesses typically rely on traditional insurance, which is predictable, but significantly more expensive.

Lower costs, greater predictability

Level-funded plans draw on the best features of both types of coverage. They achieve lower costs through self-funding, they involve a predictable, flat monthly fee, and they protect organizations from higher-than-expected costs. Even better, if costs come in lower than projected, employers get 100% of the surplus.

A ceramic maker puts the finishing touches on a new pot

How it works

Employers start by choosing from a variety of plans and paying a low, flat monthly fee.

If the actual cost of claims is lower than projected

the employer gets 100% of the claims account surplus to keep or put towards the next year.

If the actual cost of claims is higher than projected

the employer only pays the projected amount and is protected with built-in stop-loss insurance that pays for overages.

The Peoni difference

Simple and secure

Level-funding plans are subject to fewer government mandates, such as premium taxes, than typical health insurance.

Employee health matters

By taking the health of employees into account, risk can be gauged more precisely and, in turn, lower monthly costs for employers.


Your business is safeguarded from the unexpected through the use of stop-loss insurance, which covers medical expenses exceeding monthly budgets.


At year-end, if actual costs are less than projected, employers keep 100% of the surplus. And through PPO and VBP Plans, members get access to Care Advocates who can help them avoid copays on more complex and expensive care.

More choices

Small businesses have a full suite of options when deciding on providers and care: in-network, out-of-network, and coordinated care through a Care Advocate.

Ready to get started?

Ready to get started?

Let's talk