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Level-Funding: Going from Point F (Fully Insured) to Point S (Self-Insured)

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Level-Funding: Going from Point F (Fully Insured) to Point S (Self-Insured)

Level-Funding offers several strategic advantages for small to mid-size employers. It combines the simplicity of a fully insured plan with the cost savings and flexibility of self-funding. But for groups currently in a fully insured arrangement, the path to self-funded can sometimes seem daunting. Besides the financial aspects of the transition, brokers must also consider how to make the transition a smooth one for their clients.

BMA’s Level-Funding program is designed specifically for groups of 20 or more that wish to move to a self-funded type arrangement. As part of the program, BMA’s Bridge Product gives brokers the solution that will help them guide clients through the transition while minimizing disruption for the client. Outlined below are the 2 key ways that BMA’s Level Funding Program will help your clients go from Point F (Fully Insured) to Point S (Self-Insured).


BMA’s Bridge Product includes numerous options that ease the transition to self-funded plans:

  • National Network: This gives members wide access to providers, helping them maintain their relationships with their current doctors.
  • Choice of PBM: If there’s a PBM you like, there’s no need to pick a new one. The Bridge Product enables clients to maintain consistency in PBM services once they’ve moved to self-funded.
  • Cash Reserve for Favorable Claims: If clients have saved money from healthcare claims, that savings will build funds within the clients’ claim funding accounts.
  • Flexible Plan Designs: This enables clients to keep the coverages that were heavily used while customizing a plan that best meets the needs of their employee base.

Loss Protection

As groups transition to self-funded plans, the Bridge Product provides stop-loss protection that will give your clients financial peace of mind.  This unique approach allows employers to submit fixed monthly premiums like a fully insured plan. These premiums are constant for the 12-month contract period. If claims exceed the amount of premium paid on medical expenses, the stop-loss carrier makes up the difference, protecting the employer from additional costs during the contract period.

BMA’s Level Funded Program makes the transition to self-insurance achievable and seamless for small and mid-size groups. By offering plan flexibility and strong financial protection, brokers can not only offer clients a cost-saving benefit option, but also a smooth process as they go from Point F to Point S.

If you would like to offer this program to your clients, give BMA a call at 210-697-9900 X 307.

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