Level-Funded vs. Fully Insured: Which Lowers Cost for Small Businesses in NOCO?

When you're running a small to mid-size business in Northern Colorado or Wyoming, health insurance is one of your biggest expenses. You want great coverage to keep your team happy, but you need to keep costs predictable and low.

Most employers know about Fully Insured plans, where you pay a fixed premium every month and the carrier handles all the claims. It's predictable, but the rates often jump every year.

But there’s another option built for predictability and potential savings: Level-Funded Plans.

What is Level-Funding, Simply Put?

Level-funded plans combine the fixed monthly cost of a fully insured plan with the cost-saving potential of self-funding.

• Fixed Payments: You pay a fixed monthly amount, just like a traditional plan. This covers the maximum expected claims, admin costs, and stop-loss insurance.

• The Big Difference: If your team's medical claims are lower than expected by the end of the year, you get money back. You don't get this money back with a fully insured plan—the carrier keeps it.

• Safety Net: The "stop-loss" insurance protects you from unexpected, catastrophic claims, so your costs remain predictable.

The Treeline Take: Why NOCO SMBs Love Level-Funding

For many healthy, growing businesses in our service area, level-funding can be a smarter choice:

1. Lower Cost Potential: You have a chance to earn back thousands of dollars in annual premium.

2. Greater Flexibility: Plans are often more customizable than standard fully insured options.

3. Transparency: You get a clearer picture of where your healthcare dollars are going.

We specialize in bringing these options to small and medium businesses (5–200+ employees) in Greeley, Fort Collins, and beyond. Let us compare your current fully insured plan with a custom level-funded option. It only takes a quick, honest conversation.

Ready to see if Level-Funded is right for your team? Request a Fast Quote.