By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
5 min read

Level Funded Plans vs. ICHRA: Which Reigns Supreme for Small Businesses?

Written by
Team Orca
Published on
Est read time
5 min read

As a passionate advocate for empowering businesses and individuals in their health care decisions, we've often been asked which one reigns supreme. Let's dive in, shall we?

Understanding the Contenders:

Level Funded Plans:

These are a midpoint between traditional health insurance and self-funding. They allow employers to pay a set monthly fee, which covers employee health claims up to a certain point. If claims surpass that limit, stop-loss insurance kicks in. At the year's end, if claims were lower than anticipated, businesses often receive a refund. Sounds pretty good, right?


A newcomer but fast-growing favorite, ICHRAs allow employers to reimburse employees for health insurance premiums and medical expenses tax-free. There's a beautiful flexibility here: businesses decide how much they want to contribute, and employees choose the health insurance that fits them best.

When to Consider a Level Funded Plan

If your small business has had a relatively stable or predictable health claims history, and you're willing to assume a bit of risk, a level funded plan might be the way to go. It allows for potential savings when claims are low, and there's the safety net of stop-loss insurance. Plus, with the added perk of possible year-end refunds, it's like having your cake and eating it too.

When to Lean Toward ICHRA

Here's where my heart lies (although I promise to keep things balanced!). ICHRAs shine in their simplicity and empowerment. If your business values flexibility and seeks to cater to diverse health needs without the nitty-gritty of managing a traditional group plan, ICHRAs are your best bet. They're particularly useful for:

- Businesses with diverse workforce needs.

- Those who prioritize employee choice and autonomy in health care decisions.

- Companies that want predictable monthly costs without delving into the complexities of health claim management.

Why ICHRA Might Just Edge Out

While both options have their merits, ICHRA offers an unbeatable combination of simplicity, flexibility, and empowerment. They essentially democratize health care, allowing employees to choose what's best for them, while freeing up businesses from the intricate web of traditional health plans. And let's not forget the advantage of predictable monthly costs, which can be a game-changer for budgeting.


While Level Funded Plans have their time and place, and can indeed be a great option for certain businesses, ICHRA brings a fresh, empowering approach to the table. For a world that's increasingly moving towards individual choice and flexibility, ICHRAs might just be the next big thing for small businesses. So, for those ready to embrace the future of health care with both hands, ICHRA awaits.

Related posts

Explore more related content

What is Venteur

Explore the best human-first Health Insurance platform

Icon: Workflows

Simple, personalized health benefits

Sign up in minutes, define your contribution, and let your employees choose the health plan that works right for them

Icon: Broker

Integrations to make everything run smoothly

We'll connect with your payroll and finance systems to make deductions and premium payments seamless

Icon: Marketplace

Easy onboarding and off-boarding

In just a few clicks, add your roster and make updates on the fly. We'll handle it from there.

Icon: communications

Venteur Certified Brokers to help your employees pick the right plan

Our trusted brokers ensure the best outcomes for employees and employers by unlocking health savings and providing unrivaled plan options.

Icon: AI

AI-powered plan recommendations to give you confidence while you shop

Backed by 30 years of healthcare data, Venteur’s AI helps employees compare and choose the best plan for their unique situation.

Icon: Rocket

Compliance and reporting because no-duh!

Venteur manages plan administration, reporting, and compliance so you can focus on growing your business.