Why Level-Funded Plans Are Your Ace in the Hole for 2025—Stats and Solutions Brokers Can’t Ignore

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, the potential refunds. Yet, you’re still hitting walls—clients who balk at “self-funding lite,” admin overload that eats your time, and fully insured renewals that feel like a lazy default. In 2025, with healthcare costs climbing and small businesses sweating, level-funded plans aren’t just an option—they’re your edge. Here’s why, backed by hard numbers and a plan that actually delivers.

The Stats Tell the Story

The Kaiser Family Foundation’s 2024 Employer Health Benefits Survey drops some eye-openers:

36% of covered workers in small firms (3-199 employees) offering benefits are in level-funded plans—steady from 34% in 2023, but a massive leap from 19% in 2018.
Among small firms offering health benefits (51% of them in 2024), over a third now lean on level-funded designs. That’s roughly 184,000-200,000 businesses nationwide.
Meanwhile, premiums for fully insured small group plans jumped 7% in 2024, while level-funded plans held steadier, thanks to underwriting and claims transparency.

The trend’s 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 budget. Reality? The stop-loss protection baked into plans like our Limited Day Health Plan caps their exposure—36% of small firm workers are already proving it works. The kicker? Our No Deductible Bronze MVP strips away employee cost barriers, boosting utilization without spiking employer risk. Pitch this: lower costs, zero deductibles, and a safety net. They’ll stop seeing ghosts.

Pain Point #2: Admin Feels Like a Second Job

You’re not just selling—you’re hand-holding through claims data, renewals, and compliance. Fully insured plans dump that on carriers; level-funded plans shove it back to you. Our fix? Fundamental Care’s simplified administration offloads the grunt work. We manage claims, crunch utilization data, and keep it ACA-compliant, so you’re not buried in spreadsheets. Brokers tell us this slashes their admin time by up to 20%—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 with that 7% premium hike. Level-funded plans save up to 30% (industry benchmark from BenefitsPRO), but you’ve got to fight the “if it ain’t broke” mindset. Here’s your ammo: our Limited Day Health Plan’s tailored design—shorter hospital stays, robust outpatient care—slashes waste while keeping employees happy. Pair that with potential refunds (realized by 60% of our clients last year) and you’ve got a no-brainer over bloated renewals.

Pain Point #4: Standing Out in a Crowded Market

Every broker’s got a level-funded pitch. How do you win? Differentiation. The No Deductible Bronze MVP isn’t just a buzzword—it’s a magnet for small businesses under 50 employees (where only 47% offer benefits, per KFF). No deductibles mean employees actually use the plan, driving satisfaction and retention—key selling points when clients grill you on value. Plus, our transparent claims data hands you actionable insights to tweak plans year-over-year, making you the strategic partner they can’t ditch.

Your 2025 Playbook

Level-funded plans aren’t new, but the stakes are higher. Small businesses are bleeding from rising costs—47% say a 15% rate hike would kill their coverage (eHealth, 2024). You’ve got the stats: 36% adoption, 30% savings potential, and a market primed for change. Fundamental Care’s Limited Day Health Plan delivers lower costs, no deductibles, tailored coverage, and ironclad protection—with admin support to keep you sane.

Ready to turn pain into profit? Submit an RFP, obtain a quote for your clients, and see why brokers are calling this their secret weapon.

Submit an RFP for your Client Group Today!