Determination and application of index rate.
1. The index rate for a rating period for any class of business may not exceed the index rate for any other class of business by more than 20 percent.
2. For a class of business, the premium rates charged during a rating period to small employers with similar characteristics for the same or similar coverage, or the rates that could be charged to such employers under the rating system for that class of business, may not vary, because of health status-related factors, from the index rate by more than 30 percent.
3. As used in this section:
(a) “Base premium rate” means, for each class of business as to a rating period, the lowest premium rate charged or that could have been charged under a rating system for that class of business by the carrier to small employers with similar characteristics for health benefit plans subject to regulation by the Commissioner.
(b) “Index rate” means, for each class of business as to a rating period for small employers with similar characteristics, the arithmetic average of the applicable base premium rate and the corresponding highest premium rate.
Last modified: February 27, 2006