All Savers® Alternate Funding
An alternative small business self-funded health insurance solution.
The number-one concern for small business owners is the cost of health care.1 All Savers Alternate Funding plans were built with your small business in mind, making it our goal to provide an affordable health plan solution. All Savers Alternate Funding plans are intended to help you save money – and help your employees get more out of their health plans, too.
All Savers Alternate Funding plans have three parts:
- A self-funded medical plan
- A third-party administration agreement
- A stop-loss insurance policy
The self-funded medical plan pays covered medical expenses of your covered employees and their dependents.
The third-party administration agreement between you and United HealthCare Services, Inc. is the contract for claims processing, billing, customer service and other administrative services.
The stop-loss insurance policy (also known as excess loss insurance policy) by All Savers Insurance Company2 helps protect the self-funded health plan from large, catastrophic claims by an individual covered member, and helps provide overall protection in the event that all claim payments made under the medical plan exceed a certain dollar limit.
How is an Alternate Funding plan beneficial?
With traditional health insurance plans, a small business pays a fixed premium to the insurance company. The insurance company then pays health care claims as well as the administrative costs, sales commissions and taxes.
If the actual health care claims are higher than expected, the insurance company covers them. But if the claims are lower than expected, the insurance company keeps the difference. This means your company doesn’t get anything back if your employees have lower-than-expected claims.
If covered health care claims are lower than expected with an All Savers Alternate Funding plan, your plan shares the savings with money back at the end of the year (where allowed by state law). If the covered claims are higher than expected, your stop-loss insurance policy covers them.
Because the plan is “level-funded”, your company will make the same monthly claims funding payment throughout the plan year. You won’t have to pay any more for claims at the end of the plan year, even if you have high claims costs.
Self-funded medical plans are not subject to most state insurance mandates or state insurance premium taxes3, which can mean lower costs throughout the year.
1Stop-loss coverage is still subject to premium tax.
2National Foundation for Independent Business Study.
3All Savers Insurance Company in all states, except MA, MN and NJ.
Administrative services provided by United HealthCare Services, Inc. or their affiliates. Stop-loss insurance is underwritten by All Savers Insurance Company (except MA, MN, and NJ), UnitedHealthcare Insurance Company in MA and MN, and UnitedHealthcare Life Insurance Company in NJ. 3100 AMS Blvd., Green Bay, WI 54313 (800) 291-2634.