BenSelect:Admin:Plan:Rates:GroupLife

The Rates tab lets you set up rates for the selected benefit plan. If you have multiple rate groups, you can set up rates for each rate group.

Single Tier, Salary-based plans - Rates Tab

This type of plan computes the benefit amount based on a percentage of the employee's salary. One or more percentage levels may be defined, each with its own associated employee and employer costs. The coverage tier is always Employee Only.

Note: You may also select more than one payer product for this type of plan; if selected, ensure you set rates for each product.

The following sections list the element name and provides a description. The elements that are available depend upon the type of engine that created the plan selected.

Rate Grid

Setup for the rates is organized into a grid with 4 tabs:

• Rates
• Limits
• Options
• Step Down

Rates Tab

You can enter rates directly in the rates grid. Another option is to use the “Export” link at the bottom of the grid.

Benefit Level 

Level 1, with a code of 1, is the first benefit level. Click the Edit icon to open a dialog box if you want to rename the benefit level and its corresponding code.

Product 

When you have multiple payer products selected on the plan, a Product drop-down list displays the available products. Select the product, then set corresponding rates.

Age 

Hover over the Age header to see the Add icon. Click the icon to add a new age band. Enter the lower limit of the age band.

For example, if an age band is 30-39, enter 30 and click OK.

X of Salary or % of Salary 

This option displays as X of salary if you have selected View multiple of salary. Otherwise, it displays as % of Salary. Hover over the option name, then select the plus sign. The Add dialog box opens to allow you to set the appropriate multiplier or percentage. Click OK to add the new multiplier or percentage to the rate grid.

EE Cost 

Enter the employee cost.

ER Cost 

Enter the employer cost.

Per 

Enter the rate calculation (for example, per 100 or 1000 of benefit amount).

Export 

To use the Export link, first build out the age bands and benefit levels needed for your plan, then click Export. Open the grip in Excel, then paste or enter the corresponding rates into the grid. You can then copy the grid (rates only) and paste back into the grid in BenSelect.

Use rate genders 

Select if you want to build gender-specific rates for the age bands built. If selected, both Male and Female rate rows are added to the grid.

View multiple of salary 

Select this option to set the benefit amount as a multiple of salary. If not selected, benefit amount is set a percentage of salary. You will receive a warning if you switch modes.

Limits Tab

The Limits tab is used to enter GI Limit information and Max Benefit Amount for each Benefit Level. Benefit Levels and Age bands must be edited from the Rates tab and cannot be edited on any other tab. If age bands differ between levels, those rows will be disabled in the grid.

GI Limit 

Specify the upper limit of the guaranteed issue amount. You can specify a total dollar amount.

GI Multiplier 

Displays the default multiplier; only displays if Multiple of salary is selected.

Default Percentage 

Display the default percentage; only displays if Multiple of salary is NOT selected.

Min Benefit Amount 

Set the minimum benefit amount for this plan.

Max Benefit 

Set the maximum benefit amount for this plan.

Additional Benefit 

Specify any additional benefit.

Options Tab

The Options tab is used to set the Default enrollment amount for each Benefit Level. If you have selected a multiplier of salary, the tab displays Default Multiplier. If you have not selected a multiplier of salary, the tab displays Default Percentage.

Step Down Tab

The Step Down tab is used to set Step-down percentages by age band and benefit level.

Certain products have a "step-down" rule that starts diminishing the benefit on a fixed schedule. For example, people age 65 get 50% of their original benefit amount, 25% after age 75. Specify the step-down percentage by entering the allowed percentage of original benefit amount for the corresponding age band and setting the salary multiples to be the same percentage of the original multiples. For example, if employees can get 1 or 2 times salary until age 65, when there is a 75% step-down, set an age band for 65 and over, set the step-down field to be 75%, and set the salary multiples to be .75 and 1.5.

Note: The system assumes that an enrollee has already passed the threshold for the step-down unless the enrollee crosses into the step-down age band during the open enrollment period. With this in mind, it is advisable to pre-load the step-down rate into the initial Census for a person who will be in the step-down age band outside of the regular open enrollment timeframe.

• Age Band, and Benefit Amount can ONLY be added or deleted if ALL Step Downs for that Benefit Level are set to 0. If any Step Down for that Benefit Level is not 0, then Age Band and Benefit Amount cannot be added or deleted.
• The system does not allow saving invalid Step Down configuration. A valid Step Down configuration must start with 0, and each subsequent step down must be larger than the previous. For example, the Step Down at age 70 cannot be 30% if the Step Down at age 60 was 50%.

Configuration Options

Default Benefit Level 

Click the drop-down to select which benefit level you want as the default level. You can also select "None" as an option. When “None” is selected, no Benefit Level will be pre-selected on the Enrollment site and will require the enrollee to select a benefit level prior to making an election.

Default coverage tier 

Lets you specify a default coverage tier to be used when auto-enrolling during case wrap-up. Only necessary to set if there are multiple tiers for the plan.

Benefit Amount Mode 

Select the mode to use to calculate benefit amounts: Annual, Monthly, or Weekly.

Use Employee Age 

Select this option to use the employee age, rather than the dependent's age, in benefit and premium calculations.

Rates Based On Salary 

Select this option to calculate rates based on full weekly, monthly, or annual salary (dependent on Benefit Amount mode).The rate calculation would be:

Benefit amount / current salary percent * rate/per 100 *12 / payroll deduction

If not selected, rates are calculated on the multiplier or percentage of salary set in the rates table. In this instance, the rate calculation would be:

Benefit amount * rate/per 100 *12 / payroll deduction

Monthly Fee (Employee-paid) and (Employer Paid) 

This type of plan typically charges a monthly fee to either the employee or the employer. If no fee is charged, enter 0.

Display Format 

This option lets you set how you want the format of the benefit offering to display during enrollment.

• Within the [OPTION] section of the Display Format, you can apply specific formatting options. Use a colon after the word option to indicate formatting options to come. Use # to represent a variable number, and if needed, use 0 to display that digit to display.

Round Employee Salary First 

Select to round the employee’s salary before performing rate or benefit calculations.

Round Benefit After Stepdown

This option is checked by default. The system will apply the rounding that is set on the Enrollment Rules tab, under the Rates and Forms section, to both full amounts and amounts subject to a stepdown (aka benefit reduction). For example, the system will calculate the full increment (1x salary, 2x salary, etc.) then applies NO rounding, then calculates the stepdown, and only then rounds per the setting on the Enrollment Rules tab.

If the option is deselected, the rounding of stepdown amounts is calculated differently. The calculation goes in this order: Calculate the full increment (1x salary, 2x salary, etc.), ROUND the amount per the setting on the Enrollment Rules tab, then calculate the stepdown amount, with no further rounding.