Vericred, a data services company simplifying the exchange of information between health insurance and employee benefits carriers and InsurTech companies, today announced the immediate availability of level-funded plans through its Group Rating API. With this new functionality, Vericred is facilitating the distribution and quoting of these attractive alternatives to fully insured group plans.
Until now, level-funded plans have been quoted through carrier websites and broker portals, or through complex integrations with carrier APIs. As a result, it has been difficult for InsurTech applications serving brokers to offer multi-carrier level-funded quoting, thereby limiting visibility of these plans to the detriment of carriers, brokers, and employers. Through this enhancement to its Group Rating API, Vericred is making it easy for these tech companies to quote and compare level-funded plans across carriers, and even against fully insured medical plans.
“Level-funded plans are rapidly increasing in popularity, with some brokers expecting more than 50 percent of their small group book of business to migrate to level-funded products over the next two years,” said Vericred CEO Michael W. Levin. “Our new API supports this exponential growth by enabling tech platforms to build carrier-agnostic, level-funded quoting solutions for brokers and employers. And for our carrier partners, this is a cost-effective pathway to achieve visibility for level-funded products across the quoting tools brokers are using today.”
Vericred is debuting this new functionality with two carrier launch partners: AllSavers, a UnitedHealthcare subsidiary, and Humana, and expects to add level-funded plans from additional national and regional carriers and TPAs over the coming months. Initially, the rating API will deliver “illustrative” or street quotes, which are subject to underwriting and approval. Later this year, Vericred intends to further expand its capability to underwritten quotes.
“Humana has invested significantly in its digital initiatives. Working with Vericred leverages those investments by making it even easier for our distribution partners to quote and enroll in Humana products. As such, we are thrilled that level-funded group plans are now on the Vericred platform for quoting,” said Gary Davis, Humana National Leader – General Agents, Digital Initiatives, & Small Business Sales.
Sponsoring health insurance for employees has become a significant cost burden for businesses, with average annual premiums for single coverage ballooning from $4,824 in 2010 to $7,188 in 2019, according to a recent Kaiser Family Foundation (KFF) study. Level-funded plans, which package the cost savings and personalization of self-funding with the fixed-payment structure and risk mitigation of fully-insured plans, are an increasingly popular benefits option for employers struggling to address the rising cost of health insurance. The percentage of covered workers at small firms (3-199 employees) who were enrolled in a level-funded plan increased from 6 percent in 2018 to 11 percent in 2019, KFF reported.