Level-Funded Plans: Your Competitive Edge in 2025

Brokers, let’s cut to the chase: you know level-funded plans inside out. You’ve pitched the predictable costs, the stop-loss safety net, and potential refunds. Yet, you’re still hitting walls. Clients balk at “self-funding lite,” and administrative overload eats into your time. Fully insured renewals often feel like a lazy default.

In 2025, with healthcare costs climbing and small businesses feeling the pressure, level-funded plans aren’t just an option—they’re your edge. Here’s why, backed by hard numbers and a plan that truly delivers.

The Stats Tell the Story

The Kaiser Family Foundation’s 2024 Employer Health Benefits Survey reveals some surprising insights:

• 36% of covered workers in small firms (3-199 employees) offering benefits are in level-funded plans—this has stayed steady from 34% in 2023 and is a massive leap from just 19% in 2018.

• Among small firms offering health benefits (51% of them in 2024), over a third now prefer level-funded designs. That’s roughly 184,000-200,000 businesses nationwide.

• Meanwhile, premiums for fully insured small group plans jumped by 7% in 2024, while level-funded plans have held steadier thanks to better underwriting and claims transparency.

  
  

The trend is clear: small businesses are catching on. But you’re the one stuck bridging the gap between “sounds good” and “sign here.” Let’s tackle the pain points head-on.

Pain Point 1: Clients Think It’s Too Risky

Your clients hear “self-funded” in “level-funded” and picture runaway claims sinking their budgets. However, the stop-loss protection baked into plans like our Limited Day Health Plan caps their exposure. In fact, 36% of small firm workers are already proving that it works.

The kicker? Our No Deductible Bronze MVP strips away employee cost barriers, boosting utilization without increasing employer risk. Pitch this: lower costs, zero deductibles, and a safety net. Doing so will help them stop seeing ghosts.

Pain Point 2: Admin Feels Like a Second Job

You aren’t just selling—you’re also hand-holding through claims data, renewals, and compliance. Fully insured plans push that burden onto carriers; level-funded plans shift it back to you. Our solution? Fundamental Care’s simplified administration removes the grunt work.

We manage claims, analyze utilization data, and ensure compliance with the ACA, relieving you from spreadsheet overload. Brokers report this approach slashes their admin time by up to 20%—that’s time you can spend closing more deals.

Pain Point 3: Beating the “Just Renew It” Trap

Clients love inertia—rolling over fully insured plans is easy, even amid a 7% premium hike. However, level-funded plans save up to 30% (an industry benchmark from BenefitsPRO), but you must fight the “if it ain’t broke” mindset.

Here’s your ammo: our Limited Day Health Plan’s tailored design features shorter hospital stays and extensive outpatient care that slashes waste while keeping employees satisfied. Pair that with potential refunds (which 60% of our clients realized last year) and you have a clear alternative to costly renewals.

Pain Point 4: Standing Out in a Crowded Market

Every broker boasts a level-funded pitch. How do you win? Differentiation is key. The No Deductible Bronze MVP isn’t just a buzzword—it’s a draw for small businesses with under 50 employees (where only 47% currently offer benefits, per KFF).

Having no deductibles means employees will actually use the plan, enhancing satisfaction and retention—crucial selling points when clients scrutinize value. Plus, our transparent claims data provides actionable insights that you can use to optimize plans year-over-year, making you the strategic partner they can’t afford to replace.

Your 2025 Playbook

Level-funded plans aren’t a new concept, but the stakes are higher than ever. Small businesses are feeling the pinch from rising costs—47% say a 15% rate hike would lead to the end of their coverage (eHealth, 2024).

You’ve got the stats: 36% adoption, a 30% savings potential, and a market primed for change. Fundamental Care’s Limited Day Health Plan offers lower costs, no deductibles, tailored coverage, and strong protection—along with administrative support that keeps you sane.

Conclusion: Time to Act

Now is the time to convert pain into profit. Submit an RFP, obtain a quote for your clients, and discover why brokers are calling this approach their secret weapon.

Submit an RFP for your Client Group Today!