The pricing for all small business medical insurance plans is always based on age. However, your medical plan can have either an age-based or a composite rating. Dental and vision plans are always composite.
For plans with age-based pricing, the premiums for employees will depend on their age and there will be a rate table that shows the cost per age. Typically:
- Children 0-14 will all have the same rate
- Seniors 65+ will all have the same rate
- Rates will increase for every age from 14-64
For plans with composite pricing, insurance carriers will look at the average age of your company's employees and then set the rate based on that average. The rate is uniform for all employees so everyone will pay the same amount. This type of pricing is rare for medical plans.
Dental and vision plans are always composite and are not based on age.
There are 4 categories of pricing for composite plans:
- Employee only
- Employee + spouse
- Employee + children
- Family (employee, spouse and children)
If you have any questions about this, please submit a request to our customer care team at the link below: