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Traditional fully-insured plan or self-funded?

Group Health Benefits Solutions for Small Business

Allstate Benefits can help small- and mid-sized businesses find the group health benefits that best suits their needs and budget.

Our Self-Funded Program often offers a more affordable alternative to traditional, fully insured plans.

With fully insured plans, your entire premium is paid to the insurance company. You don't have control over how that money is spent and you'll never see those premium dollars again.

With Allstate Benefits Self-Funded Program, you only pay for claims that are actually incurred. In years when claims are lower than expected, you may receive money back. 1 This can add up to big savings! About 60% of our groups receive a refund.2

How much do employee benefits cost for small businesses?

Prices can vary widely based on many factors, including the plan design, deductible and coinsurance levels, and the network (if any). Many traditional fully insured plans have a price tag that is unaffordable for small businesses.

Is there a better option than fully insured health plans for small business owners?

A self-funded plan can help small- and mid-sized employers take control of their health care costs without sacrificing benefits:

Fully insured health plan

Entire premium is paid to the insurance company. Employers don't have control over how that money is spent. The premium belongs to the insurance company. Employers won't see any of those premium dollars again. In years when your group's claims are less than expected, the insurance carrier keeps the profit!

Allstate Benefits self-funded program

Employers only pay for claims that are actually incurred. With level-funding plan designs, a portion of the difference between the group's anticipated and actual claims may be refunded to the employer in years when claims are lower than expected.1

Transparency

Fully insured health plan

There is little transparency. Employers don't typically have access to data that shows how their employees are using health care. It's more difficult to see how making changes to your plan could save you money.

Allstate Benefits self-funded program

There is little transparency. Employers don't typically have access to data that shows how their employees are using health care. It's more difficult to see how making changes to your plan could save you money.

Flexibility

Fully insured health plan

There is little flexibility with claims payment. You make a set payment to the insurance carrier, and they decide how claims should be paid.

Allstate Benefits self-funded program

More options for claims payment. If you have 51 or more group members, you may have a choice between making one predictable payment every month or paying claims as they are incurred.

Do self-funded health programs offer the same support and protections as fully insured plans?

Yes! The Allstate Benefits Self-Funded Program is fully integrated. All services are seamlessly combined into one solution:

  • Stop-loss insurance – When your group has higher-than-expected claims, stop-loss insurance kicks in. This protects your finances, so you know the maximum you will spend on claims each year.
  • Pharmacy benefits management.
  • Administrative support – All day-to-day administration, including customer service and claims processing, is handled for you by a third-party administrator.
  • Industry-leading cost-control programs that help lower your claims expenses.
  • The potential to receive a refund.1

Disclaimers and notes

All exclusions and limitations apply to any coverage issued, including pre-existing condition limitation, if applicable.

1Refund applies to level-funded plans only. Refund is subject to any applicable Terminal Liability Coverage fee.

2Based on the percentage of groups that received a refund for plan years 2017 through 2019.

We are Allstate Benefits

From innovative group health coverage to our industry-leading portfolio of group supplemental insurance products, we have the experience, knowledge and service you need, and a name you know and trust.

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