Products / Level-Funded & Alternative Funding Programs

Cigna Level Funding

Public facts

Carrier level-funded medical

Cigna Healthcare self-funding product that combines claims funding, stop-loss premium, and admin fees into a preset monthly payment for groups of 25–999 eligible employees.

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Overview

Cigna Level Funding is a Cigna Healthcare self-funding arrangement. The employer’s claims funding, stop-loss premium, and administrative fees are billed as predictable monthly payments. Official features include integrated stop-loss, 25–999 required eligible employees, and surplus sharing of 50% (67% with renewal) when claims are lower than expected. Deficits are not carried forward. First-year terminal funds are collected to cover claims incurred before termination and submitted afterward. Availability varies by location and plan type.

Why it matters Cigna publishes a clear eligible-employee band (25–999), surplus split, and terminal-fund mechanic—useful when comparing carrier level-funded quotes.

Target buyer: Employers with 25–999 eligible employees (Cigna’s published band) and brokers placing Cigna Healthcare self-funded / level-funded medical.
Pricing model: Quoted level monthly payment (admin + stop-loss + claims funding); surplus returned as an administrative fee credit for renewing clients; No public rate card. Surplus is described as 50% or more back as an administrative fee credit for renewing clients; the features table lists 50% and 67% with renewal. Product availability varies by location.
Availability: National
Research: Last researched 2026-08-23; Public facts category

Key features

Single preset monthly payment: admin fees, stop-loss premium, and claim funding
Integrated stop-loss
Surplus share of 50%, and 67% with renewal, when claims are below expected
Deficits not carried into future years; employer is not billed more if claims run high
First-year terminal funds to cover run-out after termination
Plan-design flexibility; most self-funded plans not subject to state benefit mandates (vendor statement)
Published eligible-employee range: 25–999

Integrations

Cigna Healthcare medical plan designs (vendor: works with any Cigna Healthcare plan design, including consumer-driven)
Optional integrated dental (named on Cigna Level Funding client flyers)
Cigna Healthcare as ERISA claim fiduciary for ERISA plans (named on client flyers)

Overview

Cigna Level Funding is a registered Cigna Healthcare self-funding product. The Cigna Group operating subsidiary named on the product page is Cigna Health and Life Insurance Company (Bloomfield, CT) and affiliates. In Utah, the same legal entity is specified for all products and services.

The product rolls claims funding, stop-loss premium, and administrative fees into one monthly amount that does not fluctuate with claim activity except for enrollment shifts. At year-end, if claims are lower than expected, renewing clients may receive 50% or more of the savings as an administrative fee credit. If claims are higher, Cigna says clients will not have to pay more, and deficits are not carried forward.

This page is the Level Funding product, not Cigna ASO for large fully self-funded groups or Cigna stop-loss sold on its own.

Key Capabilities

Constant monthly cost (enrollment adjustments aside).
Integrated stop-loss as the stated protection level.
Surplus: features table lists 50% and 67% with renewal; body copy says 50% or more as an admin-fee credit for renewing clients.
Terminal funds in year one to cover claims incurred before termination and submitted after.
Eligible employees: 25–999 (required, per the official features table).
Benefit-design flexibility; Cigna states most self-funded plans are not subject to state benefit mandates.
Client flyers add: same benefits across states under self-funding, optional dental integration, and Cigna Healthcare as ERISA claim fiduciary on ERISA plans.

Integrations & Ecosystem

The official Level Funding page does not list payroll or ben-admin connectors. Documented ecosystem items:

Any Cigna Healthcare plan design, including traditional and consumer-driven, per client flyers.
Optional dental integration for savings and predictability (flyer).
Standard Cigna Healthcare networks and services that come with the chosen plan design (not re-enumerated here).

Product availability may vary by location and plan type.

Pricing

Custom quote. The bill is the level monthly payment. Surplus, if earned, is an administrative fee credit for renewing groups—not a guaranteed refund and not a published dollar amount.

Notes & Limitations

Availability varies; no complete public state list, so states_available is National.
Surplus percentages on the features table vs body copy should be confirmed on the proposal (50% / 67% with renewal vs “50% or more”).
Terminal-fund and run-out details beyond the first-year collection statement are not fully specified on the marketing page.
Policy forms and exclusions apply; Cigna directs buyers to a representative for costs and coverage details.

Sources

Tags: level-funded · Cigna · stop-loss · self-funded · group medical