Age-rated premium calculator: what does your group cost by age band?
Some plans price each employee by age band. This calculator adds up your group by band and shows total premium, the average per employee and how much comes from your oldest band.
Total your premium by age band
Enter how many employees are in each band and the monthly rate from your quote.
Your estimate
This calculator gives a planning estimate only. The default rates are illustrative. Use the age-band rates from your own quote. Premiums may also vary by family tier and area.
How age rating works
Age-rated plans charge each covered person based on an age band, so the premium follows the makeup of the group. A group with many older employees pays more in total than a group of the same size that skews younger. Adding up the bands shows where the premium comes from.
Age-rated versus composite
A composite rate averages the group into a single price per employee, which spreads cost evenly. Age rating can look cheaper for a young group and costlier for an older one. The average shown here is the composite rate that would produce the same total, which makes quotes in both formats easy to compare.
Common questions
Which plans use age rating?
It depends on the market and funding type. Your broker can tell you how a given quote is rated.
Can I compare an age-rated quote with a composite quote?
Yes. Use the average per employee per month from this calculator and compare it with the composite rate.
Do rates include family members?
Age-rated quotes may price each covered person separately. Check how your quote treats dependents.
Why does my total change at renewal if no one left?
Employees age into higher bands, and the carrier may change rates.
Laws and rules referenced
45 C.F.R. § 147.102 — Rating rules for fully insured plans: age (3:1, paragraph (a)(1)(iii)) and tobacco use (1.5:1, paragraph (a)(1)(iv)).
This tool gives estimates for education, not tax or legal advice. Rules change, so confirm your situation with a qualified advisor.
Talk to us about rating and funding
Book a 30-minute call and we will look at your census, your quotes and how each option is rated. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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