Case Study
Faith-Based Benefits: A Smarter Plan for Christian Employers
An Exclusive Guide from Route Three Insurance and Financial Services
Why This Guide Matters
Christian employers are under pressure to provide quality benefits, contain costs, and align with biblical values. Traditional PPO plans are expensive, opaque, and often profit-driven. This guide offers a better path by introducing level funding, self-insurance, ICHRA options, and mission-aligned healthcare strategies supported by Route Three and the Christian Employers Alliance (CEA).
1. What Is Level Funding?
Level funding is a hybrid between fully insured and self-funded insurance plans. Employers pay a fixed monthly amount that includes administrative costs, stop-loss premiums, and an expected claims amount. If claims are lower than expected, the employer receives a refund.
Predictable costs
Opportunity for refunds
More plan control
Exempt from many state mandates (governed by ERISA)
Example: A group of 30 employees moved from a $450,000 fully insured plan to a level-funded plan with $150,000 in fixed costs and claims. Claims came in at $170,000, and they still realized $130,000 in savings versus fully insured.
2. Why Christian Employers Choose Covenant Choice
Covenant Choice, administered by Route Three and supported by CEA, is a faith-based healthcare solution for groups of 5–100 employees.
Key Features:
Legal Protections: CEA members are exempt from federal mandates on abortifacients and gender transition coverage.
Mission-Aligned Plan Design: Exclude services that conflict with Christian values.
Backed by Legal Wins: Two federal court victories secure religious exemptions.
3. Stop-Loss Insurance: Protecting Your Financial Health
Specific Stop-Loss: Protects against large claims from individuals (e.g., claims above $20,000).
Aggregate Stop-Loss: Protects against total claims exceeding a defined threshold (e.g., 125% of expected claims).
In high-claims scenarios, stop-loss insurance activates, limiting your exposure while maintaining plan affordability.
4. Benefits of Self-Funding and Level Funding
Financial Control: Funds belong to your plan—not the insurer.
Customized Benefits: Tailor to your workforce and beliefs.
Better Cash Flow: Pay as claims occur, not in advance.
Access to Data: Use real-time insights to improve outcomes and reduce costs.
80% premium increase over 10 years has driven many employers to explore self-insured options for sustainability and stewardship.
5. ACA Compliance Without Compromise
Meet MEC (Minimum Essential Coverage) standards to avoid Sledgehammer penalties.
Leverage plan design flexibility to comply with ACA requirements while maintaining alignment with Christian values.
ERISA regulation allows exemption from costly state benefit mandates.
6. ICHRA: Another Flexible Option
The Individual Coverage Health Reimbursement Arrangement (ICHRA) is a flexible solution for small employers.
Reimburses employees tax-free for qualified individual health insurance premiums
No group plan required
Ideal for distributed workforces or employers wanting to set fixed budgets
Can be tailored to different employee classes
Route Three can fully administer ICHRAs, making it simple to manage while giving employees choice and control.
7. Case Study Snapshot
Company Size: 30 employees
Prior Plan: $450,000 annual premium (fully insured)
New Plan: $150,000 max liability (level-funded)
Claims: $170,000 total
Result: Savings of $130,000; customizable benefits; legal compliance
8. Using Surplus Funds
Unused claims funds can be:
Rolled over to offset future years
Used to add benefits (e.g., HRAs, dental, vision, disability)
Returned to the plan trustee at termination
9. Checklist: Is Your Plan Aligned with Your Mission?
Are abortifacients excluded?
Does your plan reflect your Christian values?
Do you have control over plan design?
Are you ACA compliant while maintaining faith alignment?
10. Your Next Step
Every guide download includes:
Free employer plan consultation with Ralph Weber
Comparison of fully insured vs. level-funded and ICHRA options
Templates for HR communications
Access to Covenant Choice plan design experts
Route Three is proud to partner with the Christian Employers Alliance to provide mission-aligned benefits for a better future.
Contact Now
(832) 615-4888
Schedule Your Audit. Start Saving—Faithfully.
Email connect@routethree.com
Call: 832-615-4888
