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4 Tier Rates in Small Group Health Plans Mandated for 2015

Small group health plans in Massachusetts will see a change in the way rates are provided upon renewal in 2015. Due to federal health care reform, all small group health plans will be provided on a 4 tier rate basis, including rates for Singles, Couples, Employees with Children and Families. Two and three tier rates will no longer be offered to small groups, defined as businesses with 50 or fewer benefit-eligible employees.

The calculations to convert the premium to four tiers is premium-neutral, so companies that currently have two tier rates and enroll only singles and families should not see a significant jump in the family rate.

This change does not affect dental plans, even if the health and dental plans are provided by the same carrier.

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