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An Essential Guide to Understanding Level Benefits

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An Essential Guide to Understanding Level Benefits

Level benefits are revolutionizing the traditional approach to health insurance, offering a more predictable and financially manageable system for employer-sponsored plans. SMB owners often grapple with offering robust benefits to attract and retain talent while managing cost pressures. A level funded plan, sitting between self-funded and fully insured options, provides a tailored solution that balances cost and coverage.

Level funded plans allow businesses to pay a fixed monthly fee based on estimated costs, which encompasses medical claims and administrative fees. If claims are lower than expected, businesses may receive a refund or credit. Conversely, if claims exceed a certain threshold, stop-loss insurance covers the excess, safeguarding businesses from unpredictable expenses.

This structure offers financial clarity and control while retaining flexibility in plan design to meet specific business needs and employee preferences. It is a compelling option for SMBs keen to provide competitive health benefits without facing the volatility of traditional self-funded plans.

Visual summary of how level funded plans balance risk and control for SMBs, demonstrating financial predictability, potential refunds, stop-loss security, and customization options - level benefits infographic pillar-4-steps

What is a Level Benefit Plan?

When we talk about level benefits, we’re delving into a unique blend of insurance planning that combines elements of self-funded and fully insured models. Let’s break down what this really means and how it impacts your business.

Self-funded

At its core, a level benefit plan is a form of self-funded insurance. Unlike traditional insurance, where a company pays a premium to an insurance provider, here, the company itself bears the initial risk for health claims. This setup gives businesses more control over their healthcare expenses.

Fixed Cost

One of the standout features of a level benefit plan is its fixed cost structure. Businesses pay a set monthly fee, which is calculated based on their employees’ projected healthcare costs. This fee remains constant throughout the contract term, regardless of the actual claims made during the period. This predictability is a significant advantage for budgeting and financial planning.

Monthly Payment

The monthly payment in a level benefit plan includes the costs of claims funding and administrative fees. It’s designed to be steady, giving businesses the ease of knowing exactly what they’ll pay each month, which aids in managing cash flows more effectively.

Stop-loss Insurance

To protect against high claims, level benefit plans include stop-loss insurance. This coverage kicks in if healthcare claims exceed the anticipated amount set in the plan. It’s a safety net that limits financial exposure from unexpected high-cost claims, such as those arising from major surgeries or long-term treatments.

A level benefit plan offers the best of both worlds: the customization and cost control of a self-funded plan with the financial safety and predictability of a traditional insurance model. This hybrid approach is particularly appealing to small and medium-sized businesses (SMBs) that seek to offer competitive benefits while managing risks effectively.

As we explore further, you’ll see how adopting such a plan can transform the way you manage health benefits, giving you more control and potentially lowering your costs, all while keeping employee satisfaction high.

How Level Benefits Work

Administration

In a level funded health plan, administration is handled by a third-party administrator (TPA). This means that the day-to-day management of the plan, including participant onboarding, billing, and claims processing, is outsourced. This setup helps businesses focus on their core operations without the added burden of managing complex health plan logistics. The TPA also ensures compliance with health regulations and offers customer service support to both the employer and the employees.

Claims Payments

For claims payments, employers contribute a fixed monthly amount to a claims fund. This fund is used to pay eligible health claims of employees. Each claim is evaluated and paid out by the TPA based on the terms set in the health plan. If the total claims at the end of the year are less than the amount contributed, some plans allow employers to receive a refund or credit towards the next year’s premiums, making it a financially attractive option.

Advantages

One of the major advantages of level funded plans is cost control. Since employers pay a fixed monthly amount, they can budget more effectively without worrying about unexpected increases in health insurance costs. Additionally, these plans often provide more transparency into how funds are spent, which is not typically the case with traditional fully insured plans.

Another advantage is the potential for financial return if claims are lower than expected. This can be a significant incentive for employers to promote healthier lifestyles within their workforce, potentially leading to lower healthcare costs overall.

Fully Insured Plans Comparison

Comparing level funded plans to fully insured plans, the differences become clear. With fully insured plans, the employer pays a premium to the insurance company, which then assumes all risk for claims. This might seem simpler but often comes at a higher cost and with less flexibility.

Level funded plans, on the other hand, allow employers to enjoy the benefits of both self-funding and full insurance. They provide a middle ground where the employer has greater control over the plan and its costs but still has financial protection from stop-loss insurance in case of high claims.

By understanding these key components—administration, claims payments, and the advantages over fully insured plans—employers can better assess whether a level funded health plan aligns with their financial goals and employee benefits strategy. This knowledge empowers businesses to make informed decisions that could lead to more sustainable management of employee health benefits. The flexibility and potential cost savings of level funded plans could be a game changer for many businesses.

Utilizing Your Level Card

When you receive your Level Card, you’re unlocking a versatile tool for managing your benefits with ease and flexibility. Here’s how you can make the most of your card:

Visa Acceptance

Your Level Card operates on the Visa network, which means it’s accepted at millions of locations worldwide. Whether you’re paying for dental work, picking up prescriptions, or even covering co-pays at your doctor’s office, the process is as straightforward as using a regular debit card. This wide acceptance ensures that you can use your benefits freely without worrying about vendor restrictions.

ATM Withdrawals

Need cash? No problem. Your Level Card allows you to withdraw money from ATMs. This feature is particularly useful for covering out-of-pocket medical expenses where digital transactions might not be an option. Just look for ATMs that display the Visa logo, and you can access your funds quickly and easily.

Spending Flexibility

One of the standout features of the Level Card is its spending flexibility. Unlike traditional benefit plans that might have strict guidelines on what the funds can be used for, Level allows more freedom. Here’s how you can utilize it:

  • Health and Wellness: From gym memberships to wellness apps like Headspace, your card helps you maintain your physical and mental health.
  • Home and Family Care: Use your benefits for essential services like childcare or eldercare, ensuring your family’s needs are met.
  • Professional Services: Whether it’s legal advice or tax preparation services, your card has you covered.
  • Disaster Recovery: In the face of unforeseen events, funds can be used for immediate needs like groceries or temporary lodging.

This flexibility ensures that the benefits are tailored to your specific needs, making your Level Card a powerful tool in maintaining not just your health, but also your overall well-being.

By leveraging the Visa network, the convenience of ATM withdrawals, and the broad spending flexibility, your Level Card places control right in your hands. We’ll explore the role and impact of Level in the industry, highlighting how its innovative approach is reshaping the landscape of employee benefits.

The Role and Impact of Level in the Industry

In the dynamic world of fintech, Level stands out as a transformative force, particularly in the B2B2C sector. Here’s how Level is making a significant impact:

Fintech Innovation

Level is not just another company in the financial technology space; it’s a pioneer. By integrating cutting-edge payment technology with traditional employee benefits management, Level has created a seamless, user-friendly platform. This approach not only simplifies the process of managing and using benefits but also enhances the efficiency and transparency of transactions.

B2B2C Model

At its core, Level operates on a B2B2C model. This means it serves businesses but also cares deeply about the end consumer, the employees. By focusing on both B2B and B2C, Level ensures that the solutions they create meet the needs of companies while also delivering exceptional value to employees. This dual focus helps in crafting benefits solutions that are both administratively feasible for companies and genuinely beneficial for employees.

Industry-Leading Teams

Level is powered by a team of experts from some of the most innovative companies in the world, including Google, Uber, and Airbnb. This diverse talent pool brings a wealth of knowledge and experience that fuels innovation and drives the company forward. The collaborative culture at Level allows for the development of groundbreaking ideas that challenge the status quo in employee benefits.

Strategic Partnerships

To broaden its impact and enhance its offerings, Level actively seeks and cultivates strategic partnerships. These alliances with other leading companies and service providers enable Level to offer a wider range of benefits and more comprehensive solutions. Through these partnerships, Level can provide a more robust platform that addresses the diverse needs of different industries and employee demographics.

Employer Benefits

For employers, partnering with Level means access to a platform that not only offers traditional benefits like health insurance but also includes a variety of other employee perks such as wellness programs, childcare support, and even disaster recovery funds. This comprehensive approach helps employers attract and retain top talent by offering a competitive and attractive benefits package.

By transforming the traditional benefits landscape, Level has positioned itself as a key player in the fintech industry. Its innovative approach not only enhances how employee benefits are managed but also significantly improves the accessibility and usability of these benefits for employees everywhere. As we look to the future, the influence of Level in reshaping the industry continues to grow, promising even more advanced solutions in employee benefits.

Types of Benefits Offered by Level

Level has revolutionized the way companies offer benefits to their employees, providing a wide range of options that cater to diverse needs. Here’s a breakdown of the various benefits you can access through Level:

Lifestyle Spending Accounts (LSAs)

Health Reimbursement Arrangements (HRAs)

  • Tax Advantages: Offers tax benefits for both employers and employees.
  • Healthcare Costs: Helps cover eligible out-of-pocket medical expenses.

Vision Plans

  • Comprehensive Coverage: Includes exams, glasses, and contact lenses.
  • Instant Payments: Providers receive immediate payment through Level’s system.

Employee Spending Account

  • Versatility: Use for a variety of personal expenses from home improvement to professional services.
  • Convenience: Integrated into one card for all spending needs.

Disaster Recovery

  • Immediate Assistance: Quick access to funds for groceries, hotels, and home repairs during emergencies.
  • Supportive Measures: Helps employees recover from unforeseen events smoothly.

Financial Wellness

  • Future Planning: Covers services like tax preparation, financial planning, and estate planning.
  • Empowerment: Helps employees make informed financial decisions.

Health and Self-Care

  • Holistic Approaches: Funds can be used for gym memberships, mental health apps, and wellness retreats.
  • Personalized Wellness: Supports physical and mental health through diverse options.

Childcare and Eldercare

  • Support for Families: Provides funds for childcare, eldercare, and after-school programs.
  • Ease for Parents and Caregivers: Reduces the financial and logistical burden of family care.

Family-Building Journey

  • Inclusive Support: Covers expenses for adoption, surrogacy, and fertility treatments.
  • Compassionate Care: Recognizes and supports various paths to family building.

Pet Care

  • Pet Expenses: Funds for vet bills, grooming, and even adoption fees.
  • Family Member Recognition: Treats pets as essential members of the family.

Education Funds

  • Skill Development: Pays for online courses, tuition, and related expenses.
  • Career Growth: Encourages continuous learning and professional development.

Office Setup

  • Remote Work Support: Covers costs of home office equipment and internet bills.
  • Flexibility: Adapts to the needs of remote and hybrid work models.

Gender-Affirming Care

  • Inclusive Health Options: Provides funds for hormone therapy and related medical needs.
  • Supportive Environment: Aims to reduce barriers to accessing necessary care.

Mental Health Support

  • Accessible Care: Covers therapy sessions, telemedicine, and prescribed medications.
  • Promoting Wellbeing: Focuses on improving overall mental health.

Medical-Related Travel

  • Travel for Treatment: Supports travel expenses for medical treatments not available locally.
  • Comprehensive Coverage: Ensures employees can access the best possible care.

By offering such a diverse array of benefits, Level ensures that every employee can find something that resonates with their personal and family needs, enhancing overall satisfaction and productivity. Let’s explore some frequently asked questions about how these benefits work and how you can make the most of your Level card.

Frequently Asked Questions about Level Benefits

What can I use my level card on?

Your Level Card offers a wide range of spending possibilities, making it a versatile tool for managing your health and wellness expenses. Here are some of the key areas where you can use your Level Card:

  • Dental Care: From routine cleanings and x-rays to more extensive procedures like root canals and orthodontia, including Invisalign.
  • Vision Care: Use your card for basic eye exams, prescription eyewear such as sunglasses and contact lenses, and even advanced procedures like LASIK.
  • Pharmacy Purchases: Covers medications and prescription refills, as well as over-the-counter drugs with a prescription.
  • Special Treatments: Can be used for chiropractic services, acupuncture, and physical therapy.

The flexibility of the Level Card allows you to use it both in-store and online, at a wide range of providers. This means you can access the services you need, when you need them, without worrying about reimbursements or paperwork.

What does the company level do?

Level, as a company, focuses on revolutionizing the way employee benefits are managed and utilized. Here’s what Level does:

  • Simplifies Payments: Level transforms benefits into a simple payment experience, akin to buying a cup of coffee.
  • Customized Benefits Plans: Works with employers to create flexible, personalized benefits plans that fit the unique needs of their workforce.
  • Modern Tools and Insights: Provides robust tools and real-time insights for both employers and employees, helping them make informed decisions about benefits usage and optimization.
  • Comprehensive Support: Offers in-house expert assistance to design, implement, and manage benefits programs effectively.

Level’s approach ensures that benefits administration is less of a burden and more of a strategic advantage for businesses.

What kind of company is level?

Level is a B2B2C fintech company that operates at the intersection of finance and technology to deliver innovative benefits solutions. Here are some key aspects of Level:

  • Industry Focus: Primarily operates within the insurance sector, providing tools and services that enhance the way benefits are offered and managed.
  • Company Size and Reach: Employs between 51-200 people and is headquartered in New York, New York.
  • Diverse and Experienced Team: Comprises individuals from major industry-leading companies, bringing a wealth of experience and expertise to the table.
  • Mission-Driven: Aims to empower individuals to build better financial futures through transformative benefits solutions.

Level leverages technology to make health and wellness benefits more accessible, manageable, and tailored to meet the diverse needs of today’s workforce. By doing so, they play a crucial role in enhancing employee satisfaction and organizational efficiency.

Conclusion

As we wrap up our exploration of level benefits, it’s clear that NPA Benefits stands out as a leader in providing flexible health insurance options. Our commitment to cost-saving strategies and innovative benefit solutions is designed to support both employers and employees in navigating the complexities of healthcare.

NPA Benefits: Your Partner in Health and Wellness
At NPA Benefits, we understand that each organization has unique needs. That’s why we offer a range of flexible health insurance options that can be tailored to suit the specific requirements of your company and your workforce. Whether you’re interested in level-funded plans or other self-funded options, we are here to ensure that you find the perfect fit for your health coverage needs.

Cost-Saving Strategies That Benefit Everyone
Our focus on cost-saving is not just about keeping budgets in check; it’s about maximizing value for every dollar spent on health benefits. By adopting level-funded health plans, businesses can enjoy the predictability of fixed monthly payments combined with the potential for refunds on unclaimed premiums. This approach not only helps in better budget management but also in providing comprehensive coverage that meets the high expectations of today’s employees.

Flexibility That Adapts to Changing Needs
The world of work is evolving rapidly, and so are the health needs of employees. NPA Benefits is at the forefront of adapting to these changes by offering health plans that are as flexible as they are comprehensive. From traditional health coverage to innovative wellness programs and preventive care, we ensure that our benefits evolve in line with your company’s changing dynamics.

In conclusion, partnering with NPA Benefits means choosing a path of flexibility, cost efficiency, and robust health insurance options tailored to your specific needs. Our expertise and innovative approaches enable us to offer solutions that not only meet the current standards but also anticipate future trends in healthcare. Let us help you take the step towards a healthier, more sustainable future for your organization and your employees. Discover more about how we can assist you by visiting our services page.

Together, let’s redefine the way we think about employee health benefits and build systems that support long-term wellness and success for everyone in your organization.

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