CareFirst BlueCross & BlueShield has recently updated the Notice of Revised Composite Rates that must be sent to all groups after composite rates are recalculated. An example of the letter is seen below:
Currently, small group health care is billed as Age Banded. This is calculated as a rate per the age of the employee, their spouse, and their children.
Composite rating is a blending or average of all of these to calculate a rate for each member, using adult and child rates set at the beginning of the plan year.
VIDEO for Large Groups – What You Need to Know about Health Care Reform
VIDEO for Small Groups – What You Need to Know about Health Care Reform
Small Group Health Insurance Definition
Starting in 2016, states will need to define small group as 1-100 employees (and large groups as having 101 or more employees). In the interim, though, states may continue to define small groups as having a maximum of 50 employees. (from the Kaiser Family Foundation)
Questions on Health Coverage for 2015?
For more details on Age Banding vs. Composite Rating, please contact an Employee Benefits Specialist at FosterThomas HR.