Health insurance costs keep climbing for employers across South Carolina and Georgia, with premiums expected to rise another 6–7% next year — the biggest increase in 15 years. Since 1999, employer health costs have jumped by more than 260%.
At GSP Insurance Group, we partner with small and mid-sized businesses throughout Bluffton, Beaufort, and Hilton Head to help them take back control. One of the smartest, most flexible solutions we’re recommending in 2025? Level-funded health plans — a balanced approach between traditional group coverage and self-funding that gives employers predictable payments, cost control, and greater flexibility.
If you’re searching for South Carolina group health insurance that helps you balance cost and quality, a level-funded plan could be the right fit for your business.
Key Takeaways
Level-funded health plans have steady monthly payments. This helps employers plan their budgets better.
Employers may get money back if workers use less healthcare. This can help save money.
Stop-loss insurance keeps businesses safe from big medical bills. It helps keep money matters steady.
These plans can be changed to fit your team’s needs. This makes employees happier.
GSP Insurance Group gives expert help to pick and run your level-funded health plan.
Level-Funded Health Plans South Carolina Small Business Health Insurance
What Are Level-Funded Health Plans
You want health insurance that helps you keep your budget steady. Level-funded health plans South Carolina small business health insurance sc group health insurance help you control costs and coverage. With a level funded plan, you pay the same amount every month. This covers administration, claims, and stop-loss insurance. You know what to expect each month.
Your monthly payment pays for:
Administration fees
Medical claims funding
Stop-loss insurance premiums
You share some risk with the insurer. This gives you benefits from both fully insured and self-funded plans. Many small businesses in Bluffton, Beaufort, and Hilton Head pick level-funded health plans South Carolina small business health insurance, sc group health insurance. They want steady costs and more choices. GSP Insurance Group helps you build a plan that fits your team and budget.
Tip: Level-funded health plans South Carolina small business health insurance, sc group health insurance are good for employers who want to move from traditional group health insurance to a plan that saves money.
👉 Curious whether a level-funded plan makes sense for your business? Request a benefits review today.
How Level-Funded Plans Work
Even if your employees use more or less healthcare in a given month, your payment stays the same. Your monthly amount covers claims, administration, and stop-loss coverage.
If total claims are lower than expected, your business could receive a refund at renewal.
If claims exceed the expected amount, stop-loss insurance covers the overage — protecting your budget.
Here’s how it works:
You set a monthly “level” payment based on projected claims.
That payment includes all plan costs.
Stop-loss coverage limits your exposure.
This structure helps small businesses in Bluffton, Beaufort, and Hilton Head keep benefits costs consistent without taking on major risk.
Refunds and Stop-Loss Coverage
Level-funded plans combine savings potential with built-in safety nets.
Refund potential: If your group’s healthcare usage is lower than expected, a portion of unused claim funds may be returned at renewal.
Stop-loss protection: Caps your exposure from high medical costs — you’ll never pay more than your fixed monthly contribution.
📊 In 2022, 37% of employers with level-funded plans received refunds, averaging over $8,000.
👉 Want to explore cost-saving employee benefit options? Check out our post: Affordable Employee Benefits for Small Businesses.
Learn more about affordable employee benefits for small business in our Affordable Employee Benefits for Small Businesses blog post. Discover modern options like ICHRA in ICHRA: Modern Health Benefits for South Carolina Employers. Explore group health insurance solutions for Bluffton in Group Health Insurance Bluffton SC.
SC Group Health Insurance: Comparing Your Options
Fully Insured vs. Level-Funded vs. Self-Funded
Picking a health plan for your business can be tough. You want to save money and keep your workers happy. You also want to avoid big risks. The table below shows how fully insured, level-funded, and self-funded plans are different:
Feature | Fully Insured | Level-Funded | Self-Funded |
|---|---|---|---|
Monthly Cost Stability | High – Fixed premiums | Moderate – Fixed payments with refund potential | Moderate – Varies based on claims |
Customization | Low | Medium | High |
Claims Data Access | None | Limited | Full |
Potential for Savings | Minimal | Possible | High |
PBM Flexibility | Minimal | Moderate | High |
Best For | Small businesses avoiding risk | Small to mid-sized businesses | Mid to large businesses seeking control and savings |
A fully insured plan is good if you want steady costs and no surprises. A level-funded plan lets you have more control and maybe save money. A self-funded plan is best for bigger companies that want to handle their own costs.
Tip: Many employers in Bluffton and Hilton Head pick level-funded health insurance in South Carolina. They like having steady payments and more choices.
Cost Predictability and Risk
It is important to know what you will pay each month. Level-funded plans let you pay the same amount every month. You do not have to worry about big bills. Stop-loss insurance helps if someone has high medical costs. If your team does not use much care, you might get money back.
Level-funded plans keep your monthly costs steady.
Stop-loss insurance pays for big claims from one person or the group.
You can get back extra money if you do not use it all.
A fully insured plan gives you fixed payments but not much chance to save. A self-funded plan could save you money, but your costs can change a lot.
Key Features
Level-funded health insurance in South Carolina is great for small businesses. You only pay for the care your team uses, not high premiums. You can see claims data and find ways to save. You can make a plan that fits your team. There are tax benefits that help you save money.
You can read more about affordable options in our Affordable Employee Benefits for Small Business post. If you want to learn about new ideas, check out ICHRA: Modern Health Benefits for South Carolina Employers. For local tips, visit Group Health Insurance Bluffton SC.
Benefits of Level-Funded Health Plans
Predictable Payments
You want to know how much you will pay each month. Level-funded health plans give you the same bill every month. This helps you plan your budget and avoid surprise costs. You do not have to worry about big bills you did not expect. If your team stays healthy, you might get some money back. Stop-loss insurance keeps you safe from very high claims.
Fixed payments make it easy to plan.
Stop-loss insurance protects you from big bills.
Knowing your costs helps you grow your business.
Many small businesses in South Carolina like level-funded health plans for this reason. You get peace of mind and more control over your money.
Cost Savings and Refunds
You want to save money and help your team stay healthy. Level-funded health plans can help you spend less. If your workers do not use much health care, you might get a refund at the end of the year. This puts money back into your business and rewards healthy choices. Employers often save money when claims are low.
You pay the same amount every month.
If claims are low, you get money back.
Stop-loss insurance helps if claims are high.
This plan helps your team stay healthy and keeps your costs down. Many employers in Bluffton, Beaufort, and Hilton Head have seen refunds and lower bills with level-funded health plans. You can read more about saving money in our Affordable Employee Benefits for Small Business blog post.
Flexibility and Customization
You want a plan that fits your team’s needs. Level-funded health plans let you pick what works best for your business. You can choose networks, co-pays, and add special programs. This means you can build a plan that helps your workers and brings in new people.
Level-funded plans give you steady costs and a chance for rebates if you do not use all your claims. The insurer does most of the paperwork, so you have less to do.
Small businesses in South Carolina like having these choices. You can change your plan as your company grows. For more ideas, check out ICHRA: Modern Health Benefits for South Carolina Employers.
Data Access and Control
You want to make good choices for your business. Level-funded health plans let you see claims data, so you know how your team uses health care. This helps you spot trends, manage costs, and plan ahead. You can use this information to make your benefits better and keep your workers happy.
You can see claims data.
You can change your plan based on what you learn.
You get more control over your health plan spending.
Employers in Bluffton and Hilton Head use this data to make their plans better and save money. You can learn more about local options in our Group Health Insurance Bluffton SC blog post.
Drawbacks and Considerations
Picking level-funded health insurance in South Carolina has many good points, but you should know about some things to think about. Learning these facts helps you choose what is best for your business and your team.
Underwriting and Setup
Starting a level-funded plan takes a few steps. You work with an insurance company to look at your group’s health history. This is called underwriting. The insurance company uses this to set your monthly payment. You also pick a third-party administrator (TPA) to help run your plan and handle claims.
Here is a simple table showing what you will do:
Component | Description |
|---|---|
Monthly Premiums | You pay the same amount each month for your plan. |
Underwriting | The insurance company checks your group’s health to set costs. |
Stop Loss Insurance | This keeps you safe from very high claims. |
Role of TPAs | TPAs help run your plan and make sure you follow rules. |
ERISA Compliance | You must follow federal rules for employee benefits. |
ACA Reporting | You may need to fill out forms for the Affordable Care Act. |
HIPAA Compliance | You must keep your workers’ health information safe. |
TPA Responsibilities | You should clearly say what your TPA will do in your agreement. |
Note: Level-funded plans often need a certain number of employees. If your business is very small, check if you can join.
Claims Volatility
Level-funded plans help you handle changing costs by giving you a set monthly payment. Stop-loss insurance protects you from very high claims. But if your team has big claims early in the year, it can make your cash flow tight. You might need to pay extra if claims go over your stop-loss limit.
You get steady payments, but claims can still change each year.
Big claims early in the year can use up your money fast.
Handling claims and paperwork can take time, especially if you have a small team.
Tip: Many South Carolina businesses use a TPA to help with claims and paperwork. This makes things easier and lets you focus on your business.
Compliance and Risk
You must follow state and federal rules when you pick a level-funded plan. South Carolina law says plans must cover mental and physical health, give benefits for psychiatric care, and keep coverage for dependents who cannot work. Plans must also give care for serious conditions and cannot treat people unfairly in premiums or benefits.
Regulation Requirement | South Carolina Code Reference |
|---|---|
Deductibles and out-of-pocket limits for all health conditions | §38-71-290 |
Optional psychiatric benefits | §38-71-737 |
Continued coverage for dependents unable to work | §38-71-780 |
Continuation of care for serious medical conditions | §38-71-243 to §38-71-247 |
No discrimination in premiums or benefits | §38-71-200 |
Following the rules keeps your business safe from fines and helps your plan work well. GSP Insurance Group can help you understand these rules and keep your plan current. For more about rules and benefits, visit our Affordable Employee Benefits for Small Business blog.
Is Level-Funded Right for Your Business?
Choosing the right health plan for your company is a big decision. GSP Insurance Group helps you look at your options and find the best fit. Many small businesses in Bluffton, Beaufort, and Hilton Head have switched to level-funded health insurance in South Carolina with our guidance. Let’s break down what you should consider.
Company Size and Employee Health
Your company’s size and your team’s health profile matter. Level-funded health plans work well for small businesses that want steady payments and a chance for refunds. If your group is healthy and not too large, you may see real savings. Here’s a quick look:
Feature | Description |
|---|---|
Cost Predictability | You pay a fixed monthly fee. If claims are low, you may get a refund. |
Risk Mitigation | Combines steady payments with protection from big claims. |
Flexibility and Customization | You can design benefits to fit your team, like adding wellness programs. |
Pricing and Renewals | Your renewal price depends on your group’s health, which can help you control future costs. |
If you want more details on how group size and health affect your choices, check out our Affordable Employee Benefits for Small Business blog.
Risk Tolerance
You need to know how much risk you can handle. Level-funded plans give you steady monthly payments, but you still share some risk with the insurer. Many small businesses like this balance. You get about 17% savings compared to traditional plans, and you avoid big surprises. If you want to learn about new ways to manage risk, see our ICHRA: Modern Health Benefits for South Carolina Employers post.
Tip: GSP Insurance Group reviews your risk comfort and helps you pick a plan that matches your goals.
Local Market Trends
South Carolina’s market is changing fast. More employers in Bluffton and Hilton Head now choose level-funded health insurance. They want predictable costs and flexible options. GSP Insurance Group uses local data and real case studies to guide you. We help you compare plans and see what works for businesses like yours. For more local insights, visit our Group Health Insurance Bluffton SC page.
Partnering with GSP Insurance Group
Independent Advice
You should get honest help when picking level-funded health insurance in South Carolina. GSP Insurance Group cares about what you need. We give advice that is simple and easy to follow. Our team listens to what you want and helps you look at choices. We work with many top carriers, so you see lots of plans. You never have to choose a plan that does not fit your business. We help you during renewals and fix problems if they happen. We are with you every step.
Tailored Solutions
Your business is special. GSP Insurance Group makes health plans that fit your needs. We start by talking with you to learn about your team and goals. You get to see many carriers and plan choices. We make things simple and take care of the details. Our team builds custom solutions for small businesses in Bluffton, Beaufort, and Hilton Head.
Strategy/Feature | Description |
|---|---|
We learn about your business and goals before recommending plans. | |
Broad market access | You see options from top carriers every year. |
Strategic guidance | We make renewals easy and help solve any problems. |
Custom-fit solutions | Your health plan matches your exact needs. |
You can read more about how we help small businesses in our Affordable Employee Benefits for Small Business blog post.
Next Steps and CTA
Are you ready to look at level-funded health insurance in South Carolina? Here are some steps to help you begin:
Check out BlueMeasureSM level funded plans if you have 10-50 employees.
Think about these plans instead of traditional insurance.
See how level funded plans can lower fixed costs for groups that qualify.
Download the BlueMeasure brochure to learn more.
GSP Insurance Group gives you support and local knowledge. You get answers to your questions and help with your plan. Ask for a benefits review or compare plan choices with our team. Visit our Group Health Insurance Bluffton SC page for more local tips.
Take charge of your health plan. Work with GSP Insurance Group and give your business the boost it needs.
Level-funded health insurance in South Carolina lets you have more control. You can save money and feel less worried. You pay the same amount each month, so it is easy to plan. If your team does not use much care, you might get money back. Stop-loss insurance keeps you safe from big bills. Many employers pick these plans to keep workers covered and costs steady. You can ask GSP Insurance Group for a review and see what plans fit your needs.
Key Takeaways for South Carolina Employers:
You know your monthly costs, so planning is simple.
You get money back if claims are low.
Stop-loss insurance keeps your business safe.
You can pick options that work for your team.
GSP Insurance Group helps you set up your plan.
Want to learn about employer offered health insurance? Talk to GSP Insurance Group for a review and find ways to save money.
See Also:
FAQ
What is level-funded health insurance in South Carolina?
Level-funded health insurance means you pay the same amount each month. You get some benefits of self-funding but with less risk. If your claims are low, you might get money back. Many businesses in South Carolina pick this plan for steady costs and more choices.
Who should consider a level-funded health plan?
If you own a small or mid-sized business in South Carolina, think about this plan. It is good if you want steady costs, more choices, and a way to save money. You can read more in our Affordable Employee Benefits for Small Business post.
How do refunds work with level-funded plans?
If your workers use less health care than expected, you might get a refund at the end of the year. This gives money back to your business. Refunds help you save money and reward you for keeping claims low.
Does level-funded health insurance cover all essential benefits?
Yes, level-funded health insurance in South Carolina covers all the main health benefits. You follow state and federal rules. Your workers get the care they need, like checkups and mental health help. For more, visit our Group Health Insurance Bluffton SC page.
How can GSP Insurance Group help me get started?
GSP Insurance Group helps you every step of the way. You get a plan made just for you, expert help, and support all the time. We help you look at choices and set up your plan. Ask for a benefits review or read more in our ICHRA: Modern Health Benefits for South Carolina Employers blog.