The Cost Advantages of Self-Funding — With More Predictable Monthly Costs
The best of both worlds — predictable monthly payments like fully insured, with the cost control and surplus refunds of self-funding.
Free Tool
How much could a level-funded plan save your group?
Enter your employee count and current premium for a directional estimate — no documents needed.
What Is a Level-Funded Health Plan?
A level-funded health plan is a form of self-insurance designed to deliver the financial benefits of self-funding — claims transparency, potential surplus refunds, and cost control — while maintaining the budget predictability of a fixed monthly payment. Employers pay the same amount every month regardless of actual claims activity. At year end, if claims came in under budget, many carriers return a portion of the unused claims fund. If claims exceed the fund, stop-loss insurance covers the overage. You get transparency without volatility.
How Level-Funded Pricing Works
Your fixed monthly payment is made up of three components — all known upfront, no surprises mid-year.
Claims Fund
A funded account that pays your employees' actual medical claims throughout the year. This is the variable component of a self-funded plan — made fixed by level-funding.
Stop-Loss Premium
Insurance that protects you when claims exceed the funded account — both per individual (specific) and for the group in total (aggregate). Your maximum exposure is defined before the year begins.
Administration Fee
A fixed monthly fee covering TPA claims processing, member services, plan documents, and reporting. Transparent and consistent throughout the year.
These three components combine into one fixed monthly payment — giving you fully insured predictability with self-funded economics underneath.
The Surplus Refund Advantage
One of the most compelling features of level-funded plans is the potential for a surplus refund at year end. Here's how it works:
Your claims fund is set at the start of the year based on your group's expected claims.
Throughout the year, actual claims are paid from the fund. You receive monthly claims reporting — full transparency into spend.
At year end, if actual claims are below the funded amount, many carriers return a portion of the unused balance to your organization.
In a fully insured plan, that surplus goes to the carrier. In a level-funded plan, it can come back to you.
Access to the Broadest Level-Funded Market in Louisiana
As an independent advisor, Demand Benefits works with every major level-funded carrier available to Louisiana employers — giving you options that a single-carrier agent simply cannot offer.
We evaluate every carrier on claims performance, network quality, surplus refund history, and stop-loss terms — not commission rates.
How Level-Funded Compares
| Fully Insured | Level-Funded | Self-Funded | |
|---|---|---|---|
| Monthly cost | Fixed | Fixed | Variable |
| Claims visibility | None | Full | Full |
| Surplus refund | No | Possible | Yes |
| Stop-loss included | Yes (built in) | Yes | Purchased separately |
| Minimum group size | 2 lives | 10 lives | 50+ lives recommended |
| Savings potential | Low | Moderate (10–20%) | High (15–30%) |
| Best for | Small groups | 10–200 lives | 50+ lives |
For groups evaluating self-funded plans, we provide a separate full analysis at no cost.
Is Level-Funding Right for Your Group?
Strong indicators you're a fit
- 10 to 200 enrolled employees
- Moving away from fully insured for the first time
- Want claims transparency without full self-funding risk
- Interested in surplus refund potential
- CFO or owner wants predictable monthly budgeting
Signs to consider a different strategy
- Fewer than 10 enrolled lives (fully insured may be better)
- Already self-funded with strong claims performance (optimized self-funding may deliver more savings)
- Recent high-cost claimants with unpredictable outlook
- Seeking maximum cost control regardless of predictability
Not sure which funding model fits your group? Our free plan diagnostic evaluates your profile and tells you exactly where you land.
Run Your Free DiagnosticWhy Independent Advice Changes Everything
What a Traditional Insurance Agent Does
- Represents one carrier or a limited set of preferred carriers
- Compensation is tied to premium volume (higher premiums = higher pay)
- Renews coverage with minimal market testing
- Presents a narrow set of options as the full market
- Lacks access to advanced structures (captives, association health plans, alternative funding models)
What Demand Benefits Does
- Analyzes every available carrier and funding strategy
- Compensation is structured to reward savings, not premium volume
- Runs a full market analysis at every renewal
- Presents 70+ options with transparent side-by-side comparison
- Accesses captive, AHP, and financial engineering strategies most traditional agents don't offer
A Transparent Approach to Employee Benefits in 5 Steps
We've built a proven process that gives employers full market visibility, a custom strategy, and a seamless transition — with no disruption to your employees.
Analyze
We break down your current plan to identify hidden costs, inefficiencies, and risk exposure you didn't know existed.
Compare
We evaluate 70+ plan designs, funding strategies, and network options across every available carrier in your market.
Redesign
We build a customized strategy aligned with your workforce demographics, claims history, and financial goals.
Implement
We manage the full transition — carrier setup, employee communications, and enrollment — with zero disruption to your team.
Optimize
We continuously monitor plan performance and identify new savings opportunities so your results improve over time.
Serving Employers Across Louisiana
We provide full-market benefits access to groups in every major Louisiana market. See all markets →
Trusted by Employers Across Louisiana
"We were blindsided by a 24% renewal increase. Demand Benefits ran a full market analysis and found a level-funded option that cut our costs by 18% — with better coverage than what we had."
HR Director — Restaurant Group
New Orleans, LA
"Our old broker showed us two options every year. Demand Benefits showed us over 70. For the first time, we actually understood what we were buying and why."
CFO — Construction Firm
Baton Rouge, LA
"They identified $140,000 in wasted premium we didn't even know about. The switch to a self-funded plan was seamless, and our employees kept all their doctors."
Practice Administrator — Healthcare Group
Metairie, LA
Common Questions About Level-Funded Health Plans
Ready to See If Level-Funding Fits Your Group?
Most groups transitioning from fully insured to level-funded see meaningful savings in their first plan year — with no disruption to employees and no change to their benefit structure. Schedule a free 30-minute review and we'll show you exactly what you qualify for.