Composite Rate Calculations

Composite rates are calculated in a unique manner. Instead of assigning each employee a rate based on the individual age and zip code, the carrier takes an average of premiums for all enrolling employees to determine one rate for each enrollment type.

Most commonly, composite rates are expressed as distinct rates for the following enrollment types:

  • Employee Only
  • Employee + Spouse
  • Employee + Child
  • Employee + Family

This means anyone enrolling in the company with a spouse only will pay the same rate, regardless of where they live or how old they are. Similarly, all people enrolling as individuals will pay the same rate, and so on.

These rates can adjust at several times throughout the enrollment process. See Composite Rate Quotes and Adjustments for information on how and why these rates may change.

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