Alternate Funding Medical Plans

Diversified Employee Benefit Services connects businesses with alternative funding medical plans to maximize savings.

Secure an Alternate Funding Health Plan With DEBS

Traditional insurance plans often come with fixed premiums, leaving businesses at the mercy of unpredictable healthcare costs. Find a strategic alternative with the help of Diversified Employee Benefit Services.

With an alternative funding medical plan, also known as level funding, your business gains the financial control of self-funding and the security of traditional insurance. The process is simple: your designated group medical insurance carrier reviews your group’s overall health risk with a simple questionnaire. Once your group is determined to be a healthy risk, your rates are lowered at no expense to your employees. Through our alternative coverage support, DEBS helps your company secure this funding without hassle.

What Counts As Alternative Coverage?

Alternative coverage refers to non-traditional insurance options like self-funded plans, health savings accounts (HSAs), and level-funded insurance, covering expenses like emergency room visits, virtual care, prescription drugs, deductible usage, and more. These innovative approaches provide greater flexibility, cost control, and customization, deviating from the standard models of fully insured plans.

The Perks of Alternate Health Insurance

How Level Funding Controls Costs for Your Employees

Unlike one-size-fits-all insurance policies, alternative funding medical plans allow for tailored plan designs, networks, and cost sharing that better match employee risk profiles. These plans provide flexibility to adjust benefits and networks year-to-year based on utilization rates and other factors. Employers have more financial control over unused claim dollars compared to fully insured models.

Alternative Funding Health Plans Are Predictable

Employers that opt for level-funded plans pay a fixed monthly fee, covering various administrative fees, maximum claims liability, and stop-loss insurance.

Level Funding Mitigates Risks

Diversified Employee Benefit Services helps companies avoid unexpectedly large claims by covering the costs of individual plans that exceed the plan’s maximum amount.

Alternative Coverage Offers Detailed Insights

Alternative health plans come with detailed monthly data reports of employee utilization, unlike traditional insured plans.

Level Funding Keeps Employees Engaged

Under the level funding model, DEBS helps businesses find resources, best practices, and incentives to promote workplace wellness. We help companies implement ergonomic improvements, bolster mental health, and provide healthy food options.

Alternative Health Insurance Increases Your Surplus

Instead of assuming the risk for health services, your insurer covers healthcare claims and administrative costs. If the claims are higher than anticipated by the year’s end, the insurer pays them.

Assess Your Level Funding Risk With DEBS

More companies are turning to level-funded plans than ever before. With Diversified Employee Benefit Services on your side, you can minimize uncertainty. Adopt an alternatively funded medical plan and start saving.

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Have More Questions?

Alternative Funding Health Plan FAQs

What is a self-funded health plan?

With a self-funded health plan, the employer assumes the financial risk for providing employee healthcare benefits. Instead of paying an insurance company monthly premiums, the employer directly funds medical claims as they are incurred during the year.

What changes can my employees expect in provider and network access?

Diversified Employee Benefit Services aligns level-funded plans with robust networks, so employees retain access to a wide range of healthcare providers. Any changes in networks will be communicated transparently to manage expectations.

What happens if claims exceed the funded amount in a level-funded plan?

To mitigate the risk of large claims, level-funded plans incorporate stop-loss insurance. If claims surpass a specified threshold, the stop-loss coverage kicks in to protect the employer from catastrophic expenses, ensuring financial stability in the face of unexpected healthcare costs.

Say Yes to Financial Control

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