Why did Obamacare eliminate composite rating? In 48 of the 50 states a small employer with 12 employees and 26 dependents now gets a bill with 38 different rates on it. What was the reasoning for this? MA and OR are able to do composite rating through 2015, but I have to explain to clients why that is going away next year and I have yet to find an answer.


Under ObamaCare HHS eliminated composite ratings which allowed group plans to charge uniform premiums and now must use individual rates or state specific versions.

The official rule for 2013 is published here, but a second 2015 rule is in the works. The link for the second rule contains a simplified explanation of a number of different proposed changes for benefit and payment parameters for 2015.

This page does a good job at explaining composite ratings and their changes. Given the complexity of this and the lack of easily available information will research this more and add to the page, for now we hope these links help your own research.

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