Navigating the small-group health market in Indiana has never been more challenging. Premiums are rising, options are shifting, and the right choice for one business may not work for another.
Employers now commonly choose among three types of plans:
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- ACA (Affordable Care Act) Plans: Fully insured, widely recognized, reliable but costly.
- Level-Funded Plans: Partly self-funded, potential first-year savings, higher risk if claims rise.
- Chamber Care: Pooled through the Indiana Chamber, competitive rates, broad in-state network.
Understanding how these options compare is essential to make informed decisions and avoid costly surprises.
ACA Plans Are Reliable but Expensive
Affordable Care Act (ACA) plans are the most common health insurance options utilized by Indiana small businesses. They are fully insured and backed by major carriers, which means employers can rely on consistent coverage and employees are likely to recognize the plan and provider networks. Because these plans meet all federal requirements, they are easy to manage and widely accepted, making them a familiar choice for many small-business owners.
However, that reliability comes at a cost. ACA plans tend to have the highest premiums among small-business options, and renewal increases of 30% to 50% are not uncommon. Employers also have limited ability to negotiate rates or plan designs, and smaller carriers may have network limitations that restrict which providers employees can see.
Chamber Care Offers Stability with Competitive Pricing
Chamber Care is a newer option for many Indiana employers, offered through the Indiana Chamber in partnership with SIHO. Built on a multiple-employer welfare arrangement, or MEWA, it pools small businesses together to create buying power that individual companies often lack. This structure allows employers to access competitive plan designs, broad provider networks across Indiana, and support from a local, experienced carrier. For employees, this means reliable coverage with strong access to hospitals and doctors throughout the state.
While Chamber Care often offers lower rates than ACA plans and broad provider access, it does have some limitations. Because it includes slightly fewer national carriers, employees who frequently seek care out-of-state may encounter more restrictions. Additionally, Chamber Care plans are less widely recognized than ACA plans, which can require some extra explanation to employees who are used to more traditional options. Overall, it is a strong choice for employers who prioritize cost stability and access to a broad Indiana network while understanding these trade-offs.
Level-Funded Plans Provide Potential Savings with Risks
Level-funded plans are a hybrid between fully insured plans and self-funded coverage, and many small-business owners aren’t familiar with how they work. Essentially, you pay a fixed monthly amount that covers expected claims plus administrative fees. Part of that payment is set aside to cover your employees’ actual healthcare claims, and if claims are lower than expected, the plan may refund some of the unused money at the end of the year. This structure makes level-funded plans appealing because they can be marketed as lower-cost alternatives to traditional ACA plans, especially in the first year.
However, these plans carry important risks that employers need to understand. If claims exceed expectations, premiums and renewal rates can spike dramatically in the following year, wiping out any initial savings. Unlike fully insured plans, level-funded arrangements are less predictable, and employers often have to monitor claims closely and work with brokers or carriers to ensure transparency. Without careful oversight, businesses can find themselves facing sudden cost increases or gaps in coverage, making these plans more of a gamble than they may initially appear.
ACA vs. Chamber Care vs. Level-Funded Plans
Here’s a side-by-side look at the three main options:
| ACA Plans | Chamber Care | Level-Funded Plans | |
|---|---|---|---|
| Type | Fully-Insured | MEWA (Multiple-Employer Welfare Arrangement) | Partially Self-Funded |
| Premium Stability | High, Predictable | Moderate, Often Lower than ACA | Variable, First-Year Savings May Not Last |
| Network Access | Large, Familiar Networks | Broad Indiana Provider Network, FirstHealth/Aetna for Out-Of-State | Depends On Carrier, May Be More Limited |
| Employee Experience | Familiar, Widely Recognized | Good Access, Similar to ACA for Most Employees | Can be similar to ACA, but Claims Fluctuations May Impact Coverage |
| Potential Savings | Low | Moderate | Potentially High In Year One |
| Risks & Limitations | Rising Premiums, Limited Negotiation Leverage | Slightly Fewer Carries, Less Know Nationally | Renewal Spikes If Claims Are Higher Than Expected, Less Predictability |
Choosing the Right Option for Your Business
There’s no one-size-fits-all answer. ACA vs. Chamber Care vs. Level-Funded Plans each have their strengths—ACA plans offer reliability, Chamber Care balances cost and network access, and level-funded plans can deliver savings, but with more risk.
The best approach is to evaluate your current plan side by side with all three options and contact an experienced benefits consultant to understand premiums, networks, potential savings, and risk exposure. This proactive approach ensures your business can protect employees, control costs, and avoid last-minute surprises at renewal.
Please let us know if you have any questions. We understand that local companies have unique needs that most national firms don’t consider or struggle to identify. This leaves your people with a less effective, one-size-fits-all benefits plan. However, our ability to cater to the needs of our clients comes from decades of client partnerships. This perspective allows us to fully address unique needs and generate creative benefits plans.
You shouldn’t have to worry about just being a number, offering a generic plan, or getting the unique support you need. Call us today.
This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice.