March 24, 2015
On March 18, 2015, the Utah Insurance Department published Bulletin 2015-4. The bulletin relates to small employer composite rating. As background, in July 2014 HHS approved Utah’s alternate state-based composite methodology, which includes a four-tiered rating structure (employee, employee plus spouse, employee plus child and employee plus spouse and children) and several other requirements (outlined in the bulletin). The bulletin is meant to help ensure uniform application of the composite rating methodology across carriers. According to the bulletin, carriers may quote composite rates to small employer groups based on enrollment at a time prior to the plan’s effective date, but the actual rates charged must be based on enrollment at the beginning of the plan year. In addition, when a carrier presents composite rates for more than one plan offering to a small employer group, the composite rates for each plan shall be based on the entire enrollment of the small employer group. While the bulletin is directed toward carriers, small employer groups in Utah should be aware of the requirements relating to composite rating.
Bulletin 2015-4 »