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The term "experience-rated" means generally that premiums
(contributions) are adjusted to reflect experience. See also
United States v. American Bar Endowment, 477 U.S. 105, 107 (1986)
("experience rated * * * means that the cost of insurance to the
group is based on that group's claims experience, rather than
general actuarial tables"). The Congress knew this, as evidenced
by the fact that the House committee defined the term "purely
experience-rated" in its report. Yet, the Congress declined to
inscribe the term "experience-rated" in section 419A(f)(6),
choosing, instead, to use the term "experience-rating
arrangements". We believe that the scope of the term
"experience-rating arrangements" is wider than that of
"experience-rated". The conferees stated that a plan is outside
the scope of section 419A(f)(6) if any employer's liability "is
determined on the basis of experience rating". If the conferees
had meant to equate the term "experience-rating arrangements"
with the term "experience rated", they could (and we believe
would) have said that a plan is outside the scope of section
419A(f)(6) if any employer's liability "is experience rated".
The conferees did not. Nor did the Congress provide in section
419A(f)(6)(A) that the first sentence therein "shall not apply to
any plan * * * [that is experience rated] with respect to
individual employers."
The essence of experience rating is the charging back of
employee claims to the employer's account. The Prime Plan
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