The Deep Value of Surplus: Why Level Funding Beats Fully Insured, over the long run not just today.

Описание: Welcome back to Kansas City! Today we’re diving deep into one of the most powerful—and misunderstood—advantages inside level-funded and self-funded plans: how surpluses build long-term reserves, stabilize future costs, and create real financial strength for small groups.

If you’re a broker who wants to explain level funding like a true professional—or a business owner who’s finally seeing the benefits of prudence—this video breaks down everything you need to know.

⭐ In This Video You’ll Learn

How surpluses become reserves

Why level-funded plans have claims accounts and how they work

The regulatory limits on how much a group can store (e.g. ~185% of expected claims)

How reserves smooth costs as groups age

How to use reserves ethically (premium holidays, wellness programs, benefit enrichment)

What you cannot legally do with surplus funds

How MGUs price risk—and why some are better than others

How brokers can frame surplus strategy for long-term thinkers

Why Warren Buffett’s “100-year mindset” applies directly to health plans

When RBP (reference-based pricing) makes sense

When direct contracting makes more sense than broad PPO networks

Why incentive alignment matters when moving from fully insured to self-funded

This is the kind of deep knowledge that separates Noble Agents from transactional brokers.

💡 Why Surpluses Matter

Surpluses aren’t just leftovers—they are the financial proof that:

the group ran efficiently,

the plan was priced properly,

members engaged wisely, and

the employer now has meaningful choices.

Handled correctly, surpluses can:
✔ stabilize future renewals
✔ enhance employee benefits
✔ reduce out-of-pocket costs
✔ prepare the group for volatility
✔ fund plan improvements for years to come

Handled poorly, they become:
✘ carrier profit
✘ forfeited funds
✘ wasted opportunity
✘ bureaucratic store credit

Understanding this difference is what gives brokers an edge.

🏥 Direct Contracting, RBP, & Smarter Networks

We also explore when it makes sense to:

move from PPO to RBP,

tighten a network to a single hospital system,

negotiate local rates directly,

or build a small-town EPO for better employer outcomes.

Real community healthcare starts with understanding where the money actually goes—and how to keep more of it local.

🔔 If You Want More Deep-Level Funding Education…

Subscribe to The Noble Agents Podcast — the #1 podcast for brokers fighting for Main Street employers.

Every week you’ll get:

Level-funded strategy

Surplus mastery

Broker positioning

Real underwriting insights

Tools to build an anti-fragile book of business

➡ Subscribe now to The Noble Agents Podcast and join the movement.

⚠️ Disclaimer: This video is for educational purposes only and does not constitute legal, tax, or insurance advice. Viewers should consult directly with a licensed insurance professional or benefits advisor for up-to-date and personalized guidance. American Trust Administrators (ATA) operates as an MGU/TPA administering level-funded and self-funded health plans on behalf of licensed carriers. All information in this content is for educational purposes only. Nothing here constitutes legal, financial, medical, actuarial, underwriting, or insurance advice.

Plan designs, underwriting decisions, rates, surplus availability, and renewal outcomes vary by carrier, stop-loss policy, network, state regulations, and the unique factors of each employer group. Surplus return is not guaranteed and applies only to qualifying plans as defined in each group’s governing agreements.

All coverage determinations, claims adjudication, and benefits administration are subject to the terms of the applicable plan document, stop-loss contract, carrier guidelines, and state and federal regulatory requirements. Examples, case studies, and illustrations may not reflect actual client results.

Brokers must be properly licensed in applicable states and remain responsible for compliance with all federal and state marketing, solicitation, disclosure, and consumer protection regulations. Always review the plan document, SBC, carrier instructions, and compliance guidance before presenting options to employers.

© American Trust Administrators. All rights reserved. Subject to change without notice.

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