What is the Level-Funded Vault Health Plan?
The Vault Health Plan is a unique answer for employers trying to save money on the cost of group health insurance. A level-funded plan allows you to save money by paying for the cost of small claims with employer money while providing you absolute financial protection from larger claims with stop-loss insurance.
Who is the plan for?
The Vault Health Plan is for employers with good health experience who feel they are paying too much premium for too little in benefits. Do you receive money back from your insurer for being healthy? If the answer is no, then the Vault Health Plan could be the right alternative for you.
How Does the Plan Work?
The Vault Health Plan saves you money by paying the claims of your employees with your own money instead of insurance premiums. Money left in your account is your savings and not insurance company profits. You're protected with stop-loss insurance that provides coverage for large claims and caps your maximum exposure.
- Stop-loss insurance protects you when an employee has a serious claim or more employees have claims during the year than you can afford to pay.
- Each month you make a payment that covers the fixed costs of your plan: Stop-loss insurance and the administrative and sales fees.
- Level funding: You pay your fixed costs then fund your claim fund monthly with 1/12 of your maximum annual cost. You never have to pay more than this maximum amount. You are never subject to a cash call if claims go past your current maximum contribution.
- After all claims have been paid for the plan year (after the nine-month run-out period), any unused dollars in your claim fund are yours to use as you want — to be refunded or used to lower costs for the next year.
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