LevelFunded Health Survey Reveals Small Businesses Struggle to Compete For Potential Employees without Health Care Benefits
BOCA RATON, FLORIDA (April 26th, 2017) – LevelFunded Health announces today that it completed a strategic, business development partnership with Trivergance, a leading national, independent sponsor and business accelerator -- to help grow its unique, national, insurance distribution platform into middle market companies, owned specifically by private equity firms.
LevelFunded Health is focused on decreasing costs of healthcare by up to 10% to 40% by offering level-funded benefits programs, as a solution for companies that employ 50 to 2,000 full-time employees, while simultaneously improving benefit levels for these businesses. LevelFunded Health specializes in level-funded benefit programs, which essentially appear like hybrids between traditional small group health plans and concepts typically reserved for large corporations, known as ‘self-insurance" or "self-funded benefits programs”.
There is a stark difference between the traditional definition of “self-funding” and "level-funding". Level funding works very well for many businesses with 50 or more employees, as a way to cover employees with the added security blanket of a stop-loss policy from an A-rated insurance carrier that handles the plan’s administration as well as the excess risk above a certain predetermined limit.
If claims go over the funded amount, businesses are protected by a stop-loss policy, therefore stripping out all of the complexity, uncertainty and cash flow volatility of traditional self-funded benefit programs. Through its vast network of carriers, LevelFunded Health has taken away the perceived risks of “self-funded" benefit programs for small-to-middle market companies. The result has been dramatic decreases in cost and greatly improved quality of benefits.
“For small-to-mid market companies to buy healthcare the traditional and old way is just not working anymore. The expense is too high and the quality too random. We saw an opportunity in the market to provide a solution that works for these size companies. We have worked hard to deliver healthcare at much more affordable rates, with better service and much better benefits. To a private equity firm, the savings are immediately accretive. To a portfolio company, the benefits are more affordable and become a better recruitment and retention tool for the employees,” says Russ Carpel, CEO of LevelFunded Health. Our solution is a win-win and is proving itself out in the market with private equity owned companies that have few places to turn for such innovative solutions.
“We have recently partnered with LevelFunded Health to help introduce their timely solution to thousands of middle-market firms, via our unique network of national private equity firms,” says Marc Byron, CEO of Trivergance. “We see great value creation opportunities between our insurance experience combined with LevelFunded Health’s products and distribution to deliver level funded plans to a market that has operated in the same manner for years. The market has not adopted innovation and technology the way it should have. LevelFunded Health’s solutions incorporate both innovation and technology to drive down costs, improve quality and deliver much higher levels of transparency. We believe our network of private equity firms will appreciate the unique angle that LevelFunded Health has taken with regard to the complex subject of healthcare and healthcare related costs.”
Trivergance, LLC is one of the leading independent sponsors, having invested over $1 billion of third-party, institutional equity capital since 2006 into companies that can benefit from Trivergance’s track record and expertise of rapidly scaling companies. Trivergance is a unique combination of seasoned investment professionals and proven operators with a combined team of over 25 business building experts and executives. Trivergance leverages its operating team and intellectual property in the areas of branding, customer engagement, customer acquisition, direct and digital marketing and business development to produce outsized returns for its portfolio and partner companies.
LevelFunded Health is a national, tech-enabled, direct to employer distribution platform focused on level-funded benefit programs for small to mid-size employer groups. For businesses with employees ranging from 50 to 2,000, it can help to immediately save these businesses anywhere from 10% - 40% per year on healthcare costs, while simultaneously improving benefits.
For more information, visit: www.LevelFunded.com.