How are Composite Rates Calculated?

Composite rates are calculated by insurance carriers. 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 in 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.

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