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RCW 48.44.021 Calculation of Premiums-Members of a Purchasing Pool-Adjusted Community Rating Method-Definitions
Library | Washington Statutes |
Edition | 2023 |
Currency | Current through the 2023 1st Special Session |
Year | 2023 |
Citation | RCW 48.44.021 |
(1) Premiums for health benefit plans for individuals who purchase the plan as a member of a purchasing pool:
(a) Consisting of five hundred or more individuals affiliated with a particular industry;
(b) To whom care management services are provided as a benefit of pool membership; and
(c) Which allows contributions from more than one employer to be used towards the purchase of an individual's health benefit plan;
shall be calculated using the adjusted community rating method that spreads financial risk across the entire purchasing pool of which the individual is a member. Such rates are subject to the following provisions:
(i) The health care service contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:
(A) Geographic area;
(B) Family size;
(C) Age;
(D) Tenure discounts; and
(E) Wellness activities.
(ii) The adjustment for age in (c)(i)(C) of this subsection may not use age brackets smaller than five-year increments which shall begin with age twenty and end with age sixty-five. Individuals under the age of twenty shall be treated as those age twenty.
(iii) The health care service contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer, and coverage for which medicare is not the primary payer. Both rates are subject to the requirements of this subsection.
(iv) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.
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