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Comparing Different Types of Health Plan Funding Arrangements

Different Types of Insurance Plans for Your Company

Health insurance plans are an essential risk management measure that you should implement for your company. However, the issue with health plans is that they vary, evolve, and have different user requirements. Keeping track of these insurance details can be difficult, especially if you have other equally essential company obligations. Fortunately, this guide identifies helpful resources you should consider when selecting an insurance plan.

What is A Full Insured Health Plan

A full insured health plan is an insurance plan which a company gives to its employees and is self-sponsored. The employer is responsible for the premium (monthly or yearly) payments for the employee's health goals.

The policies often vary based on the preferences of the employer and the terms of the insurance carrier. While this insurance approach is usually costly, it can have several benefits for the proper organization.

Here are a few other helpful details of a fully insured health plan:

  • It allows the company to interact directly with health insurance services, which reduces the responsibilities employees have.

  • The fully insured plan helps the company stay on budget significantly if the number of employees never changes.

  • It also reduces the administrative costs that typically come with insurance plans for organizations.

What is a Self-Insured Health Plan

It refers to a group business insurance health plan where an organization takes sole responsibility for the finances of offering medical health care to employees in San Antonio, TX. Employees don't have to pay any premiums to insurance companies, but this comes with an increased risk for the organization.

It's a health plan that primarily works well for organizations with few employees. Most companies typically create fund reserves to cater to the health needs of such employees.

There are various reasons why self-insured health plans can work for your business:

  • The organization has the freedom to come up with a customized health plan to suit the needs of its employees. There are no changes in clauses or premium payments that the organization has to make.

  • The organization maintains control over the funding pool that will cater to employees' health goals. It helps with the maximization of income use, which would have otherwise gone to other company obligations.

Level-Funded Plans

The level-funded plan involves paying specific monthly premiums for each member of your organization. However, you might get a refund if the claims you make each month are low. Insurance services refer to this as a rebate. Some services also give you the option of crediting the claim to your oncoming insurance plans.

When the insurance claims increase above the allotment of your policy, your service will use "stop-loss" insurance to cover the extras. Therefore, the payments you make for the insurance never change. The other reasonable benefits of a level-funded plan can include:

  • Organizations get the freedom to customize their health insurance plans. Other options, such as the fully funded approach, tend to have several limitations.

  • The level-funded plans are also free from state taxes, which can sometimes be excessive.


You have many different insurance options for your employees, and it's important to select the right one. However, remember that there is more to picking a suitable group health insurance plan than you would expect, so knowing the different pros and cons of the various types of policies in San Marcos is essential.

Looking for Group Business Insurance in San Marcos or San Antonio, Tx?

1921 Consultants is here to assist you in finding the Group Health insurance policies that fit the needs of your employees and your business. We are always here to help, so reach out today! Or visit our website.


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