Call Us Today For A Free Quote | 480.830.2595


Dream Team Home Page Payments Claims
Colgrove Financial, LLC

Auto Home Business Life

We are all looking for ways to better manage our benefit dollars. Prices have not only have increased, but dropping the definition of full time from 40 hours to 30 hours, has forced many businesses, to reallocate people's hours. In addition, businesses with 51 employees are still required to offer health coverage. Operative word is offer health coverage.


During the Obama years, many carriers ignored their participation rules (Kind of like the government deciding which rules are in vogue and which are out of vogue, but not getting rid of out of vogue rules).  Today, we have a new president with a different view of the world.  They are going back to the old rules of 50% of the total group and 75% of the eligible staff even though we are still operating under the Obamacare rules.  This is going to be an awkward transition period considering we are clueless where this is actually going.  Unfortunately, you cannot get an accurate read from the media as the current president is an anathema.  


The level funded option for medical plans is one of the better mouse traps that came out of the Obamacare rules. This was a way to try and regain some control over benefit programs, for smaller businesses that was taken away by the Federal government   In its simplest form, (comparison to your typical fully funded plan), you pay the premium just like you have always done and there is no difference.  The claims portion or claims bucket of the premium and the fixed costs of the insurance are broken out, or unbundled. For example, when you take your car in for repairs, the garage does not just say you owe us $572.14, instead they break down the individual charges that totaled the $572.14.  If you do not spend all of the claims budget you get to use the remaining portion of the claims bucket for future employee benefits rather than let the insurance company have it.  Remember that in most years you will not spend all the claims bucket or the Insurance carriers would not still be in business. 

Based on history, insurance rates will continue to rise BUT now you have some money in the claims bucket to offset your rate increase.  Your maximum exposure is still your monthly premium, just like it always was with fully funded plans.


Your company should take a serious look at this as an option.  Level funding works in all different states, so we can help you even if you are not located in Arizona. Call me now so we can talk more.  Part II, of this series, will cover the advantages of plan designs with level funded plans.

Posted 12:01 PM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015

View Mobile Version
View Our Latest Insurance News
  Mike Bowowski

Keep up to date with Mike's thoughts on the galaxy and other events.


Read More

Colgrove Financial
Colgrove Financial, LLC
About Us
Get A Quote
Customer Service
Contact Us
Auto Insurance
Home Insurance
Employee Benefits
Business Insurance
Disability Insurance
Other Insurance Types...
Colgrove Financial, LLC
555 W Chandler Blvd. Suite 203
Chandler, AZ 85225
Phone: 480.830.2595
Colgrove Financial, LLC
How Can We Help You?
or call us at
Get A Quote My Policy Location Insurance Website Builder Refer Your Friends Testimonials Blog RSS Feed Facebook Twitter Google+ LinkedIn