Overview
Weekly funding is a funding model where a group funds its claims reserve based on claims that are actually coming due, rather than prefunding a fixed claims reserve at the beginning of each month.
Weekly funding vs. Traditional level-funding
Under a traditional level-funded model, the group pays a consistent amount each month. That amount includes fixed costs and a claims reserve calculated using the plan's aggregate factors. This gives the group predictable monthly payments, but it also means the group may be funding claims well before the money is actually needed.
How does it affect claim activities?
Under weekly funding, the claims portion is closely tied to actual claims activity. The group receives a funding request for claims that are pending payment and funds the amount needed to pay them. Fixed costs are still billed separately at the top of the month.
Is weekly funding an option for all groups?
Weekly funding is an option for all groups. The funding method is a per-group-policy setting. Any group policy can be set to weekly funding.
How to elect weekly funding for a group?
For a groups interested in weekly funding, contact your plan designer who will then notify the Yuzu team. Only Yuzu internal users have the access to change the funding method.
Why groups choose weekly Funding?
Weekly funding gives groups:
More control over their cash.
More visibility into what they're paying for.
The key here is that: claims reserves aren’t pre-funded, so that money only moves when claims need it, and each funding request comes with claim-level detail showing exactly what it covers. The tradeoff is that the funded amount changes from week to week.
How does Yuzu manage it?
Every week, Yuzu will:
Identify claims pending payment
Check the group's current available reserves balance
Calculate the additional amount needed
Send the group a funding request along with a pending claims report
Pull the approved funds
Pay the claims from the available balance
Groups are able to choose the schedule that works for them. Typically, the funding request and pending claims report go out on Monday and funds are pulled on Wednesday, which gives the group time to review in between. But we can work with each group to set a schedule they're used to, whether that means different days of the week or a different review window.
What the group still pays monthly?
Weekly funding applies only to the claims reserves. Fixed costs remain on a regular monthly invoice at the top of the month. These fixed costs include:
Administrative fees
Stoploss premiums
Network or vendor fees
The exact invoice structure depends on the group's plan and vendor setup.
Other Cadences
Weekly is the most common cadence for pay-as-you-go funding, but other funding schedules, such as twice a month, can be supported.