Podcast: Understanding Level-Funded Health Plans

Ned Schaut, President at Agency Leverage, and host of Benefits Influencer - a podcast highlighting thought leaders in the Employee Benefits industry – recently interviewed Allied National Executive Vice President Gary Ashley. 

Ashley, who earned his first paycheck from working for the family business in 6th grade, starts out by explaining what it takes to build and sustain a lasting company.
 
“We are a third-generation business now, me [and my two brothers] being the second, my two sons and a nephew-in-law, the third,” said Ashley. “In 2020, we were acquired by Blue Cross Blue Shield of Alabama, however my brothers and I also signed long-term employment contracts, as did the principles behind us, people who are the next leaders of the company. We're all in our 60s now and succession planning is an important part of the process. The new leadership will be moving up and one day replacing us. “We've got some fantastic younger talent,” Ashley enthusiastically added. 

Ashley goes on to explain what Allied has to offer small employers, “we go beyond the typical Third-Party Administrator (TPA). Allied has its own actuary on staff as well as legal and compliance departments.”
 
In 2020, Allied National celebrated 50 years of offering A+ quality service to small employers, and today, Allied is recognized as an expert in the industry when it comes to level-funded group health plans.

Level-funding, a type of self-funding, is a way for an employer to pay a set amount of money each month without the fluctuations and claims calls of traditional self-funding. In addition to getting great rates, groups who have a healthy year can get money back at the end of the plan year.
 
“Over the years, self-funding was being brought down into smaller and smaller employer sizes – which is Allied’s niche – using stop loss insurance,” Ashley explains during the interview. “It's a way to bring the advantages of self-funding to a small employer and without risk to the employer, and in particular, to the employees. It looks just like a typical fully insured benefit plan.”
 
Listen to the full interview to learn more about level-funding, Reference-Based Pricing, how employers can save money on their premiums and, how over the past 50 years, Allied has created innovative group benefit plans that not only fit the budget for small employers, but offer quality coverage, too.

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Allied National

Founded in 1970, Allied is one of the nation's oldest and most experienced third-party administrators. Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. As the small group benefit experts, Allied works with small business employers to provide unique and affordable group health benefits.