Cassandra owns a daycare facility in Waco, where she’s created a warm, safe space for children in the community. Running a daycare means having a reliable, dedicated team, and Cassandra knows that offering health insurance can go a long way in supporting her employees. But when it comes to choosing a plan, she feels overwhelmed.
When she Googled health coverage plans for daycares she saw many options including self-funded health plans and fully-insured health plans. She did not understand what those meant, but she was fairly sure that a self-funded plan would make her pull her hair out worrying about additional risk that could put on her finances. With the options in front of her, she worries about the unpredictability of costs and the risk of paying more than expected. She needs something steady and straightforward that doesn’t strain her budget.
For small business owners like Cassandra, a fully-insured plan may be just what they need. These traditional plans provide stable, predictable health insurance costs while reducing the financial risk for the business. This makes them a strong coverage option for companies looking to take care of their team without the fear of sudden, high expenses. Let’s break down how fully insured health plans work and why they’re such a great choice for businesses like Cassandra’s daycare.
Fixed Monthly Premiums for Cost Control
With a fully insured health insurance plan, the monthly premium rates Cassandra pays will remain consistent, covering the cost of medical claims, administration fees, and the health insurance company’s risk management. This fixed premium cost structure means Cassandra knows exactly what she’ll pay each month—no surprises, no sudden spikes. For a small business owner on a budget, that level of predictability brings peace of mind.
In the daycare world, every dollar counts. With fixed monthly premium costs, Cassandra can allocate her funds with confidence, knowing that her budget won’t be disrupted by unexpected out of pocket expenses for healthcare. Instead of worrying about fluctuating health care costs, she can focus on her staff and the children they care for. A fully insured health plan provides her with that stability, making budgeting straightforward and manageable.
Health Risk Transferred to the Insurance Company
Cassandra’s daycare is a small operation, and she can’t afford the potential financial impact of high employee claims. In a fully funded plan, the insurance company takes on the risk. This means that if her employees’ medical needs turn out to be higher than expected, it’s the insurance carrier—not Cassandra—who is responsible for covering those catastrophic claims.
This transfer of financial risk lets Cassandra offer health benefits without the anxiety of large, unpredictable medical expenses. If an employee needs surgery or faces a major health event, her business won’t bear the financial burden. The insurance company absorbs that cost, allowing Cassandra to provide for her employees with a sense of security. For her daycare, this makes a fully funded plan a smart choice, freeing her from the worry of unexpected bills impacting her bottom line.
Predictable Costs for Budgeting
For Cassandra, predictability isn’t just nice to have—it’s essential.Her facilities relies on making her month budgeting predictable whether it is for payroll, supplies or healthcare expenses. With a fully funded plan, Cassandra gains cost stability, knowing her monthly expenses for health insurance won’t change throughout the year.
A predictable cost of employee health insurance allows her to build her budget with confidence, keeping her daycare financially stable. This steadiness in expenses makes a fully insured health insurance plan more appealing for Cassandra, as she won’t face sudden financial hits that could disrupt her operations or force her to make cuts elsewhere. Instead, she can look ahead with clarity, knowing her health insurance expenses won’t surprise her.
Why a Fully Funded Plan Fits Cassandra’s Daycare
In Cassandra’s case, the advantages of a fully funded health insurance plan fit her needs perfectly. Fixed costs, reduced risk, and predictable expenses align well with the budget constraints and financial priorities of her daycare. For Cassandra, it’s not only about covering her employees—it’s about finding a plan that supports her business’s overall health.
For some daycares, they find the healthcare costs of a fully insured plan to be larger than what they would pay for a level-funded plan. These level funded-health plans offer the predictability found in the fully insured plans while providing the cost savings of self-insured plans. While this may not work for some businesses, if you are comparing health benefit plans with an experienced health insurance agent you can evaluate what is right for you.
Offering health insurance also helps Cassandra retain her dedicated staff in an industry where turnover can be high. Knowing that their health needs are covered adds value to her employees’ work experience, increasing their loyalty to the daycare. Cassandra can feel confident that she’s not only protecting her team’s health but also investing in her business’s future by providing a fully-insured employer sponsored health plan.
Take the Next Step
If you’re like Cassandra, running a small business and looking for reliable health insurance options, a fully funded plan could be the solution. It provides predictable monthly costs, takes on the financial risk of high claims, and lets you budget with confidence.
Insurance for Texans works with daycares and other small businesses around Texas to help them evaluate their business health insurance plan options. Our health insurance agents work with you to determine your insurance coverage needs and budget to find an affordable health insurance option that fits. We understand that one size does not fit all, and getting the right plan type for your annual costs is important.
Click the button below to explore fully funded health plan options with Insurance For Texans and find the right fit for your business.