Level-Funded Health Plans: A Broker’s Guide to Combat Rising Health Insurance Costs for Employers


In an era marked by soaring healthcare costs and uncertainty, insurance brokers face the challenge of guiding their employer clients through a complex benefits landscape. With a median health care cost increase of 7% projected for 2024, employers are desperate for solutions that offer affordability and flexibility. This is where level-funded health plans come into play, offering a financially sustainable and customizable option. Here’s why brokers should have this option at the top of their recommendation list.

The Rising Tide of Healthcare Costs: A Broker’s Concern The Inflation Equation

With a 7% cost increase on the horizon for 2024, following a similar increase in 2023, brokers have to act fast. According to new data from the International Foundation of Employee Benefit Plans (IFEBP), a nonpartisan group with more than 31,000 members, U.S. corporate employers project a median health care cost increase. It’s the second year in a row that employers have projected a 7% hike. The IFEBP survey highlights how inflation is impacting multiple dimensions of healthcare, from labor costs to medical supplies, thereby pushing the costs onto employers.

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