What reference date are we using for the age of the individual? (They may need to get this from their broker or plan documents.) Most commonly this will be...
- Rate goes up first of the month following birthday,
- Rate is frozen based on age as of 1/1, or
- Rate is frozen based on age as of the start of the plan year
If the dependent rate is age-based, how many dependents are included in the calculation? If the rate for a dependent 20 or under is $100/month, what is the cost for three dependents? Five? Twelve? If only a certain number of dependents are included in the calculation, should the system select the oldest dependents, or the youngest?
A lot of clients are used to providing us with only the employee portion of the plan, such as for a deduction. However, to set up a benefit plan, we will need three pieces of information (monthly rates):
- Total cost
- Employer portion
- Employee portion