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  • Writer's picturePhin Sutton

Exploring New Ways to Provide Cost-Effective Health Insurance Options for Your Employees

Many small businesses struggle with the cost of providing health benefits for their employees. As the cost of employee benefits coverage is on the rise, it’s important for employers to find creative ways to make their employee benefits plans more cost effective.

There are alternative health funding options for small businesses that could help your organization manage healthcare costs and offer flexibility in tailoring your plan needs to the needs of your employees.

In this blog post, we will explore some of the most innovative funding options available for small businesses, and discuss how these options can help companies reduce their healthcare costs while still providing high-quality benefits coverage to their employees.

Is Traditional Health Insurance Your Best Option?

Traditional avenues for providing health insurance include fully insured plans from an insurance carrier. While these plans can provide comprehensive coverage, they often come with a hefty price tag and lack flexibility when it comes to tailoring them to fit the specific needs of your employees.

One alternative option for companies is self-funded health insurance plans. With a self-funded plan, employers assume the financial risk of paying claims and can design their plans to fit the needs of their employees. This allows businesses to set limits on certain services, or even offer specific wellness incentives to their employees, in order to promote healthy living and reduce healthcare costs overall.

Another innovative funding option available for small businesses is health reimbursement arrangements (HRAs). An HRA gives businesses the flexibility to fund healthcare expenses directly for their employees with pre-tax dollars. Employers can choose how much money they allocate toward HRAs each year, which can help them manage healthcare costs in a more cost-effective way.

What is a Self-Funded Insurance Plan?

A self-funded insurance plan is one in which employers fund part or all of their employee’s medical expenses directly instead of paying premiums to an insurance carrier.

This type of plan offers more control over costs and allows you to tailor coverage to fit the specific needs of your employees without having to worry about restrictive regulations imposed by an insurance carrier.

What Are The Benefits Of Self-Funded Insurance?

The primary benefit of a self-funded insurance plan is that employers can save money by not having to pay traditional premiums or administrative fees associated with fully insured plans.

Additionally, self-funded plans offer more flexibility when it comes to designing a plan that best meets the individual needs of your employees. You can also customize a self-funded plan by setting pre-determined limits on how much each employee can spend on healthcare services each year or month.

Other benefits of self-funded insurance include the ability to create wellness programs for your employees, and increased visibility into your company’s healthcare spending. If you are looking for a more cost-effective way to provide health benefits coverage for your employees, a self-funded insurance plan may be the right option for your organization.

What Are The Benefits of Alternative Health Funding Options?

Small businesses often look for ways to make healthcare more affordable and flexible, while still providing adequate coverage. One attractive option is hybrid funding – level funding or minimum premium plans – which allow employers with fewer than 100 employees the opportunity to benefit from self-funding models without taking on extra cost variability and risk. This innovative method can help companies move beyond traditional insurance methods in order to optimize their health plan benefits!

What Are The Benefits of Level Funding Options?

Level funded health plans offer a convenient and cost-effective way for small businesses to manage their healthcare costs. Employers pay one monthly premium that covers both administrative expenses and expected employee claim costs, with “stop loss” insurance in place if actual claims exceed the amount paid. This creates an incredibly beneficial model of predictable spending while still providing complete coverage - no more worrying about surprise bills after every visit to the doctor!

Overall, alternative health funding options like level funded plans can help small businesses better manage healthcare costs and tailor their coverage to meet the needs of their employees. If you’re looking for a more cost-effective way to provide high quality benefits coverage, consider exploring these innovative options today.


Self, alternative and level funding insurance plans offer many benefits over traditional, fully insured plans from an insurance carrier such as lower costs, greater flexibility, and more control over healthcare spending.

If you are looking for ways to provide comprehensive health benefits while staying within budget, exploring self-funded options may be worth considering. It could be exactly what you need to ensure that both you and your employees are getting the most out of your healthcare coverage without breaking the bank.

At Quantum Benefits, we provide companies with top-notch, affordable benefit options for their workers, and we can assist you in incorporating as many of these emerging trends into your benefits program. Call us now at 203-946-0320 to speak with a representative, or simply fill out our online contact form.

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