In the small group market, some insurance carriers offer employers the option of charging either composite or member-level rates. This simple Excel tool converts member-level employee-only rates to a composite rate. This could be helpful for small employers who want to average the age-banded rates for their employees so they can charge each employee the same amount.
Tagged: Age Rating
Beginning in 2014, ACA-compliant small group plans are limited to 3 to 1 age bands. A 21-year-old’s rate is set at 1.000, and all other employees and dependents are charged based on a factor of that rate. The standard age curve applies to the individual market as well.