Fully insured plans are traditional health insurance arrangements where your organization pays a fixed premium to an insurance carrier. In return, the carrier assumes the financial risk for covered medical claims. This option offers predictability in budgeting and reduces administrative responsibilities, as the insurance company handles all claims processing and risk management

An Administrative Services Only (ASO) arrangement involves a partnership where you self-insure your health benefits but outsource the administration to a third-party administrator (TPA). The TPA handles claims processing, customer service, and other administrative tasks, while you retain the risk management aspect. This can streamline administration while providing the flexibility of self-insurance.

Level-funded plans combine aspects of fully insured and self-insured plans. Your organization pays a fixed monthly fee that covers both insurance and administrative costs. At the end of the year, if the claims are lower than the premiums paid, you may receive a refund. This approach offers the predictability of fixed premiums with potential cost savings if claims are lower than anticipated.

The Individual Coverage Health Reimbursement Arrangement (ICHRA) is a newer option that provides employees with a defined amount of money to purchase their own individual health insurance plans. With ICHRA, you can customize benefits based on employee classes, offering greater flexibility and control over your benefits budget while empowering employees to choose coverage that best suits their needs.