How does Service 1st Benefits support my business during open enrollment?

We personally manage the entire open enrollment process — from educating employees to handling enrollment forms and answering plan questions. Our goal is to make open enrollment smooth and stress-free for everyone.

Can employees contact you directly for help?

Yes. Employees can reach out to us anytime for questions about claims, coverage, ID cards, or plan details. We act as your team’s benefits partner, not just your broker.

What size businesses do you work with?

We specialize in serving small and medium-sized businesses, typically ranging from 1–200 employees. If you’re growing or planning to expand, we help scale your benefits as your team grows.

Do you handle communication with insurance carriers for us?

Absolutely. We take care of claims issues, employee changes, renewals, and any carrier communication so you don’t have to spend hours on hold.

Do you offer voluntary or supplemental benefits?

Yes. We can provide optional add-ons like disability, accident, or critical illness insurance to enhance your benefits package at little or no cost to the employer.

What types of group benefits do you offer?

We provide comprehensive group health, dental, vision, and life insurance options for small and medium-sized businesses. We help you compare plans, handle enrollment, and manage carrier communication.

What information do you need to provide a quote?

We typically need: Number of employees Basic employee census (age, gender, ZIP code) Current plan (if applicable) Desired benefits or coverage goals We keep the process as simple as possible.

Do you charge fees for your services?

No. Our services — including plan comparison, open enrollment, and year-round support — are provided at no additional cost to your business.

Fully Insured vs Level-Funded Health Plans: Which Is Better for Small Businesses?

chopgood3
2 days ago
2 min read

Choosing the right health insurance funding strategy is one of the biggest decisions a small business can make.

Many employers automatically renew the same fully insured plan every year without realizing there may be alternative options that could lower costs and improve flexibility.

One of the fastest-growing alternatives is the level-funded health plan.

But what’s the difference between fully insured and level-funded plans—and which one makes more sense for your business?

What Is a Fully Insured Health Plan?

A fully insured health plan is the traditional insurance model.

Your company pays a fixed monthly premium to the insurance carrier, and the carrier assumes the financial risk for employee claims.

Pros of Fully Insured Plans

Predictable monthly costs
Simpler administration
Lower financial risk
Familiar structure for employees

Cons of Fully Insured Plans

Typically higher premiums
Less flexibility
Limited access to claims data
Annual rate increases can be significant

For many small businesses, fully insured plans are easy to manage—but often expensive.

What Is a Level-Funded Health Plan?

A level-funded plan combines features of both fully insured and self-funded insurance.

Employers pay a fixed monthly amount that covers:

Estimated claims costs
Administrative fees
Stop-loss protection

If claims are lower than expected, the employer may receive money back at the end of the year.

Pros of Level-Funded Plans

Potential cost savings
Lower monthly premiums
Refund opportunities
Greater transparency into claims data

Cons of Level-Funded Plans

Not ideal for every group
Claims risk can fluctuate
Underwriting approval may apply

Level-funded plans are often a strong fit for healthier or more stable employee groups.

Which Option Is Better for Small Businesses?

The answer depends on several factors, including:

Company size
Employee demographics
Claims history
Budget goals
Risk tolerance

Some businesses prioritize stability and simplicity, while others want more cost control and flexibility.

A benefits broker can help analyze both options and compare real numbers side-by-side.

Common Misconceptions About Level-Funded Plans

“They’re only for large companies.”

Not true.

Many small businesses with as few as 10 employees now qualify for level-funded options.

“They’re too risky.”

Most level-funded plans include stop-loss protection to limit employer exposure.

“They’re hard to manage.”

Modern benefits platforms and broker support make administration far easier than many employers expect.

How Service 1st Benefits Helps Employers Compare Plans

At Service 1st Benefits, we help employers evaluate:

Fully insured plans
Level-funded options
Self-funded strategies
Carrier pricing
Employee contribution structures

We also help manage enrollment, employee communication, and carrier coordination throughout the year.

Final Thoughts

There’s no one-size-fits-all solution when it comes to health insurance.

The right funding strategy can help businesses reduce costs, improve employee satisfaction, and create long-term stability.

If your company has experienced large renewals or rising healthcare costs, it may be time to explore alternatives beyond traditional fully insured plans.