Three Choices for Funding Health Plans

Priority Health works to keep Michigan employers' health care costs low by offering three different funding options for our health plans:

Fully funded

• Traditional health plan funding option
  
• Employers pay monthly premium per employee
  
• We pay all claims and administer the plan.
• Available to small and large groups
  

Shared funding

• Blends traditional features of fully funded plan with rewards of a self-funded arrangement
• Employer pays a monthly premium to cover all claims (annual amount determined by the group's claims history) and administrative costs
  
• Priority Health provides administrative services
• Employer shares the risk with Priority Health:
  
  • If the employer group's claims are lower than their paid premiums, we'll refund them the difference.
  • If their claims are higher, they'll owe us the difference but only up to a ceiling amount we agree upon at the beginning of the plan year
• Service and network guarantees ensure low costs for the group
• Available for groups with 100 or more members

Self-funded

• Employers pay a monthly premium that covers claims and administrative costs.
• We provide administrative services.
• Employer assumes all of the risk.
• Available to large groups
  

Learn more about all three funding options in the employer section of this website.