Cigna Self-Funding Makes Sense

Cigna Level-Funding Makes Sense – 
It saves dollars and cents, too.

If you have groups with 26 or more enrolled employees with situs outside of CA, group headquarters outside of CA, a benefits department outside of CA or the majority of employees outside of CA, Cigna has competitive rates!

If your groups want more control over how their insurance dollars are spent, level-funding may make sense for them.

Level-funding offers groups a consistent monthly premium and the opportunity to save when claims are lower than expected.

Many smaller employers are moving to a level-funding strategy because they want:

  • To save money on insurance when there’s a good claims year
  • Control and flexibility over their plan’s benefit design
  • Composite Rates
  • To offer one consistent plan design across multiple states
  • Greater transparency and reporting that shows how the plan is being utilized
  • The ability to realize ROI (return on investment) on health improvement programs for employees

Look at this hypothetical example of how Cigna Level FundingSM works in comparison to a fully insured plan. This employer’s move to Level Funding saved the company money.

  Cigna Level Funding Fully Insured Plan
Fixed Costs $140 $340
Expected Claims $191 NA
Max Claims + 110% Corridor $191 x 1.1 = $210 NA
Total Maximum Costs $350 (140 + 210) $350
Surplus Share Option Yes; two-thirds to client NA
Actual Claims $150 $150
Surplus Opportunity

(Assumes employer has 1/2 share)

$60 ($210 – $150) Zero
Total Costs after Adjustment and Client Surplus Share $320 ($350 – $30) $340


The value of Cigna

Cigna helps your client build a culture of health.

You can also add Dental, Vision, Life, and other products alongside your client’s level-funded Medical coverage. Adding Dental may offer your client a valuable product integration credit, too.

Cigna’s dedicated team of level-funding experts, coupled with 24/7/365 customer service, means you and your clients can get the support you need when you want it.

Call us regarding your California situs groups as well. We have solutions for your 101+ groups.


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