Aetna Launches New Health Insurance Option in Michigan for Small Businesses

Michigan-based small businesses now have access to a new self-funded health product called Aetna Funding Advantage (AFA). The product was designed for small businesses that enroll five to 50 benefit-eligible employees that want to offer their employees a quality health plan at a reasonable cost. Aetna Funding Advantage offers a variety of plan options; Michigan groups have achieved up to 40 percent cost savings with AFA.*

“Aetna Funding Advantage offers great benefits, some which were traditionally only available to larger employers. This is a differentiated product tailored to small business needs,” said Kristin Myers, Aetna’s President of the Great Lakes Market. “AFA offers the predictability of a fixed and affordable monthly payment, the financial protection of stop loss, and the opportunity to receive money back when claims are lower than expected. Our customers told us what they needed and AFA was designed to meet those needs. It’s very exciting!”

Historically, small employers have offered their employees fully insured plans and made a monthly payment to a health insurer to cover both the medical claims and administrative costs of the plan. With AFA, benefits coverage is offered and funded by the employer, with administrative services and stop loss insurance coverage provided by Aetna Life Insurance Company. Employers will pay a fixed monthly amount with AFA based on a percentage of maximum expected claims, as well as administrative fees and stop loss premiums. If claims are higher than this maximum expected claim amount, stop loss coverage provides financial protection for the employer.

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