Composite to tiered rate calculator: what would each tier cost?
Enter your composite rate, enrollment by tier and tier factors to see the four tier rates. Built for HR and finance teams comparing rate structures.
Convert a composite rate to tier rates.
Factors are assumptions. The result updates as you type.
Tier factors are your assumption. A carrier sets its own.
Your estimate
A model built on your own tier factors, not a carrier quote. Real tier rates depend on the carrier, the plan and your group.
What is a composite rate?
A composite rate is one average rate for every enrolled employee, no matter how many family members are covered. It is simple to administer and spreads cost across the group. A tiered rate sets a different price for employee only, employee and spouse, employee and child or children, and family coverage.
Why does the structure matter?
Under a composite rate, a single employee pays the same as a family, so the single employee helps cover family costs. Under tiers, price follows coverage, which usually lowers cost for singles and raises it for families. Employer contribution strategy and the mix of your workforce decide which structure fits.
Common questions
Are the tier factors standard?
No. Carriers use their own factors. The defaults here are a reasonable starting point for modeling, not a quote.
Does the total change when I switch to tiers?
In this model the total premium stays the same. Only the split between tiers changes.
Can an employer contribute differently by tier?
Yes. Many employers contribute a larger share for employee-only coverage and a smaller share for family coverage. Our contribution calculator can model that.
Should we offer composite rates?
It depends on your workforce and your carrier. We can compare the structures with your enrollment data.
Talk to us about rate structure
Book a 30-minute call and we will look at your enrollment, your carrier rates and the structures that fit. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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