For small to mid-sized companies looking to control costs and provide high-quality health care to employees, level-funded plans are an off-the-shelf solution that offers savings and other benefits. However, not all level-funded plans are created equal — so it's important to understand the plan specifics and ask the right questions before signing the dotted line.

In essence, a level-funded health plan is a hybrid between a traditional fully insured plan and a self-funded plan. With level-funded plans, employers benefit from the predictability of a monthly payment — similar to fully insured plans — with the added opportunity to achieve savings found in self-funded plans. For some employers, this is a win/win that offers control, flexibility and savings — as well as access to data that can help them make informed decisions about their benefit plans.