October 2018

Innovative Funding Solutions

Insured 50% Dividend Eligible
Available for businesses with 150 or more eligible employees.

When claims are low, wouldn’t it be great if your clients could get money back? Insured 50% Dividend Eligible funding is designed to provide organizations with 150 or more employees all the benefits of a traditional fully insured plan along with the opportunity to save when claims are lower than anticipated. Here’s how it works:

  • If claims are lower than expected, renewing clients are eligible to get 50% of their savings back as a credit on the following year’s premium invoice.
  • If claims are higher than expected, Cigna covers the additional costs, so clients don’t have to pay more.
  • At the end of each policy year, clients receive a settlement exhibit that shows actual premium, expenses, unpooled paid claims, and any change in claim reserves.
  • Clients have a fresh start with each new policy year.

Learn more here.

Shared Returns® Minimum Premium
Available for businesses with 200 or more eligible employees.

If your clients value the protection of a traditional fully insured plan, but want more flexibility and freedom with their budget, Cigna’s Shared Returns Minimum Premium may be the funding solution they’re looking for. Features like a lower monthly payment, lower taxes and the ability to pay claims as they occur provide upfront savings opportunities.

Should claims ever be higher than expected, flexible reimbursement options provide peace of mind that they’ll be protected from unexpected costs throughout the policy year. Your clients can choose the reimbursement option that best fits their needs and budget—annual, monthly and even next-day.

Learn more here.

Cigna Graded FundingSM
Available for businesses with 51-500 eligible employees.

Cigna Graded Funding is a self-funding solution that includes flexible stop loss insurance options, and is specifically designed to preserve cash flow and protect your client against unexpected claims. As of September 1, 2018, Graded Funding includes two enhanced features:

  • Clients pay nothing in the first month, allowing for better cash flow during the transition from a prior carrier. (Applies to new clients only.)
  • Clients have a choice between 15, 12, or 6 months of terminal protection. This provides flexibility in choosing coverage for claims incurred during the policy year, but submitted after termination.

Cigna Graded Funding remains a “pay-as-you-go” self-funding solution where, after the first month, clients pay only fixed costs plus actual claims below their stop loss limits.

This funding option is ideal for your clients who have a basic understanding of how self-funding works, have claims experience that typically runs better than average, and who demonstrate a willingness to assume more risk for the potential to keep 100% of unused claim dollars.

Learn more here.

Cigna Level FundingSM
Available for businesses with 25-499 eligible employees.

Cigna Level Funding is the solution for your small to midsize clients that want the advantages of self-funding with similar simplicity to a traditional fully insured product.  It combines predictability, control, and information along with the added benefit of financial “reimbursement” when claims run well.

With Level Funding, an employer can enjoy some of the familiar financial aspects of fully insured funding while taking advantage of the benefits of self-funding.  These include:

  • At year-end, a client will receive a credit if claims run well.
  • Online client-specific reporting is accessible which shows a client’s plan’s claims.
  • Flexible plan designs are available to help control costs.
  • Each year the client starts with a clean slate, there are stable monthly costs, and there is full protection after the policy ends.

Learn more here.