EE only, EE + spouse, EE + children and family are the four rate tiers on most renewals: they decide what each employee pays and how the plan is tested.
A rate sheet lists a premium for each tier of coverage. Knowing what each abbreviation means helps HR read a renewal, set contributions and explain the cost to employees.
What each rate tier means.
EE Only: The Employee Alone
EE stands for employee. EE only is single coverage for the employee with no dependents. It is the base rate for the plan and the number used to test ACA affordability.
EE + Spouse: Employee and Spouse
This tier covers the employee and a spouse. It is usually priced higher than EE only and lower than a family rate.
EE + Child(ren): Employee and Dependents
This tier covers the employee and one or more children, but no spouse. Dependent children can generally stay on a parent plan until age 26.
Family: Employee, Spouse and Children
The family tier covers the employee, a spouse and one or more children. It is the most expensive tier and where employers often see the largest cost share.
EE + 1: A Common Variation
Some carriers use a three-tier structure with EE only, EE + 1 and family. EE + 1 covers the employee and one dependent, whether a spouse or a child.
Composite Rates: One Rate for Everyone
Some plans use a single composite rate by group instead of tiered rates. Employees see tiered prices, but the carrier prices the group on its mix.
What the tier structure changes for the employer.
Employer Contribution Is Often Set by Tier
Many employers pay a percentage of the EE only rate and a smaller share of dependent coverage. The tier structure sets how much extra a family pays.
ACA Affordability Uses the EE Only Rate
For the employer mandate, affordability is tested against the lowest-cost self-only plan. Dependent tiers can be expensive without failing the test.
Tier Mix Drives Renewal Pricing
If more employees move to family coverage, the carrier sees higher cost per member. Enrollment mix is part of how renewals are priced.
Dental and Vision Use Tiers Too
Ancillary products use the same tier language, though the number of tiers may differ from the medical plan.
What to settle when you read a rate sheet.
How many tiers does each carrier use?
Compare like with like. A three-tier quote and a four-tier quote are not directly comparable without mapping enrollment.
What is our current enrollment by tier?
Without enrollment by tier, the carrier cannot price accurately and you cannot compare quotes fairly.
How much does the employer pay for each tier?
Set contributions on purpose. A flat dollar amount and a percentage of EE only produce different costs for families.
Does the plan treat domestic partners and stepchildren the same?
Eligibility definitions differ by plan, and they affect who falls in each tier.
The questions employers ask about rate tiers.
What does EE only mean?
EE only means employee only: coverage for the employee alone, with no spouse or dependents. It is the single-coverage rate.
What does EE + spouse mean?
It means the employee and a spouse are covered. Children are not included in that tier.
What does EE + child(ren) mean?
It means the employee and one or more children are covered, with no spouse on the plan.
What is the family tier?
The family tier covers the employee, a spouse and one or more children. It is generally the highest rate.
What is an EE + 1 tier?
Some carriers use EE + 1 to mean the employee and one other person, either a spouse or a child, in a three-tier structure.
Which tier is used for ACA affordability?
The employer mandate tests affordability against the lowest-cost self-only coverage, which is the EE only tier.
Can children stay on a parent plan?
Under the Affordable Care Act, plans that offer dependent coverage must cover children until age 26.
How do I compare two quotes with different tiers?
Map your current enrollment onto each quote so each is priced on the same members. Then compare annual cost by tier.
General information about rate tiers, not legal advice. Plan-specific questions belong with your carrier or ERISA counsel, and we will bring them in.
Where these details come from.
This page summarizes public guidance reviewed in October 2026. Plan definitions vary, so confirm tier definitions with your carrier.
U.S. Department of Labor: Employee Benefits Security Administration →
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Contribution split by tier
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