Level Funding
Best for Employers with less than 150 employee lives
Advantages
- Per employee, per month funding is easy to budget and easy to understand
- Specific and aggregate stop-loss coverage limits your plan’s exposure
- Monthly and quarterly reports provide full transparency on plan costs and performance
- 100% of the unused claims fund will be refunded at the end of the run-out period
Disadvantages
- Not good for poor performing companies
- The administrative fees may cut into the savings you hope to gain
- Some programs limit the amount of refund you can earn in a good year
Small Risk
Little Reward
Employee Benefit Cooperatives/Captives
Best for Employers with 50 – 300 employee lives
Employee Benefit
Cooperatives/
Captives
Best for Employers with 50 – 300 employee lives
Advantages
- Stability of larger numbers
- Transparency in data and costs
- Accountability to participate in wellness and risk management programs
- Rewarded financially in good claim years
- Swim in a healthier pool
Disadvantages
- Members are expected to “play nice in the sandbox”
- Member engagement – calls and meetings
- Could be adversely impacted by the pool
Medium Risk
Medium Reward
Self-Funding
Best for Employers with 250+ employee lives
Advantages
- Plan design flexibility
- Benefits from good performance
- Reward for investments into health, wellbeing and risk management
- Access to claims data and transparency in costs to your plan
Disadvantages
- Not always good for small to mid-size employers
- Fluctuation in claims can be a budget challenge
- Not good for employers with an unhealthy population
Highest Risk
Greatest Reward
Interested in Joining?
Contact Us
Employers’ Advanced Cooperative on Healthcare
(479) 431-6762
3600 Old Greenwood Road Suite 3
Fort Smith, Arkansas 72903
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