The pricing of small business health insurance plans is always based on two factors: the location (zip code) of your company and your employees' ages.
The prices for plans available to you are always based on the location of the company, regardless of where your employees live. If you have employees that live/work out of state, the cost of their insurance will be based on the company's zip code and not their personal zip code.
- To view coverage options for companies who have employees that live/work out of state please refer to this SimplyInsured article:
The second factor that affects small business insurance plan pricing is the age of your employees. The cost of health insurance increases with age.
For example, say Company A and Company B are located in the same zip code, have the same health insurance plan, and have 3 employees each. The employees of Company A are 28, 30 and 32. The employees of Company B are 50, 52 and 52. The health insurance premiums for Company A will be less than the premiums for Company B because the employees are younger.
Note: If employees add dependents, the cost of the dependent varies based on the type of coverage the dependents enroll in. Medical plans typically have age-based pricing but dental and vision plans have composite pricing.
- Each member of the family will have different premiums based on their age
- Children 0-14 will all have the same rate in premiums.
- Seniors 65+ will all have the same rate in premiums.
- Dental/Vision has composite pricing and is broken down into four categories:
- Employee only
- Employee + spouse
- Employee + children
- Family (employee, spouse and children)
For more information about the difference between age-based and composite ratings, please read this article:
If you have any questions about this, please submit a request to our customer care team at the link below: