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Health Insurance FAQs
Health Insurance FAQs

questions and answers about health insurance and employee benefits

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Health Insurance FAQs

questions and answers about health insurance and employee benefits

Level-Funding

A level-funded plan is a form of self-funding packaged to feel like a fully insured plan, with a fixed monthly cost and a possible year-end refund. These FAQs explain how it works.

What is a level-funded health plan?

HealthInsuranceFAQs, June 16, 2026June 16, 2026

A level-funded plan is a self-funded arrangement packaged to feel like a fully insured one: the employer pays a fixed monthly amount covering claims funding, stop-loss premium, and administration, with a potential year-end refund if claims run low. It’s popular with small and midsize employers.

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