Arlo Health Texas Group Health Insurance — Self-Funded Plans for Texas Small Business (2026)
Arlo is a Texas-focused health carrier offering self-funded plans with fixed monthly costs, direct primary care partnerships, and straightforward pricing for Texas small and mid-size employers.
Arlo Health Plan Options in Texas
Arlo offers three level funded plan tiers with fixed monthly costs and year-end surplus return. All plans are level funded (self-funded structure).
| Product | Type | Min Group | Key Feature |
|---|---|---|---|
| Arlo Basic | Level Funded | 5 | Fixed monthly cost |
| Arlo Standard | Level Funded | 5 | Enhanced coverage |
| Arlo Premier | Level Funded | 5 | Richest benefit tier |
Texas Intel Most Brokers Don’t Know
Arlo-specific intelligence for Texas group health brokers and HR teams evaluating this Texas-only carrier.
Texas-Only Carrier
Arlo Health operates exclusively in Texas and is licensed by TDI. Unlike national carriers that apply generic underwriting to Texas groups, Arlo’s actuarial models are built specifically around Texas claims patterns, hospital pricing, and demographic trends. TDI regulatory oversight means all disputes and external reviews run through Austin — not a distant state regulator.
Self-Funded With Fixed Monthly Costs
Arlo uses a level funded structure: employers pay a fixed monthly amount that covers expected claims, stop-loss premium, and administration. Unlike fully insured plans where the carrier keeps all surplus, Arlo returns unused claims dollars to the employer at year-end. For Texas small employers who need cost predictability, this combines the cash flow stability of fully insured with the surplus potential of self-funding.
Direct Primary Care Network Partnerships
Arlo has active DPC clinic partnerships in Texas major metros. Members can access DPC for unlimited primary care visits at no additional per-visit cost. Texas has grown one of the largest DPC networks in the country — Arlo’s partnership with existing DPC clinics (vs. building their own) keeps overhead low and provider relationships flexible.
Underwriting Uses Texas-Specific Data
Arlo’s underwriting team is Texas-based and applies Texas-specific actuarial tables, not national average risk adjustors. This matters for Texas employers: industries like oil & gas, construction, agriculture, and tech — all over-represented in Texas — have specific claims patterns that national underwriters often misapply. Arlo’s Texas-specific approach can produce more accurate and often more favorable quotes for healthy Texas groups.
Stop-Loss Integration Is Proprietary
Unlike some level funded carriers that use third-party stop-loss reinsurers, Arlo arranges stop-loss coverage through its captive reinsurance structure. For Texas employers, this means Arlo controls the stop-loss renewal process — there is no separate stop-loss carrier who can non-renew or “laser” a high-cost individual at renewal. This is a meaningful risk management advantage vs. carriers using independent stop-loss markets.
How HRAs Work with Arlo Health
HRA compatibility and strategy for Texas employers pairing an HRA with Arlo’s level funded plans.
Arlo is a level funded (self-funded) carrier only. No fully insured product exists. HRA integration is natural and well-supported through Arlo’s employer portal.
📋 Fully Insured + HRA
Arlo does not offer a traditional fully insured product — all plans are level funded (self-funded structure). Employers specifically needing guaranteed-issue fully insured coverage should consider BCBSTX, UHC, or Aetna.
💰 Level Funded + HRA
Arlo’s core product is level funded, making HRA integration natural. An employer can configure an HRA layer within Arlo’s plan to reimburse employee deductibles or copays. Year-end claims surplus can be reinvested into the HRA for the following year. Arlo’s employer portal shows monthly claims vs. fund balance in real time.
🏛 Self-Funded + HRA
Arlo’s level funded plans function as self-funded arrangements under ERISA. Plan-integrated HRAs can be embedded with employer-defined dollar limits per employee tier. Because Arlo controls the stop-loss and TPA functions internally, HRA administration can be coordinated within a single Arlo account relationship — simplifying the vendor landscape for small Texas HR teams.
Arlo Health — Pros & Cons for Texas Employers
An honest assessment for Texas HR teams and benefits brokers evaluating Arlo.
✓ Strengths
- Texas-only carrier — TX-specific underwriting and claims expertise
- Fixed monthly costs with year-end surplus return
- DPC partnerships reduce primary care cost
- Proprietary stop-loss — no external laser risk at renewal
- TDI-regulated — all dispute resolution through Texas
- Simple product line — easier HR administration
✗ Limitations
- Smaller carrier — less name recognition for employee trust
- Limited geographic footprint vs. national carriers
- No PPO product — HMO/DPC model only
- Narrower hospital network than BCBSTX or UHC
- No ASO product for 100+ employee groups wanting pure self-funding
- Limited public financial disclosure as a newer carrier