Hometown Health Builders Association of Northern Nevada (BANN) has decided to move from an age-branded rating system to a composite rating system on their next renewal date. If you’re a Builders Association member who uses Hometown Health for your group policy, here’s what you need to know about the BANN renewal.
Composite vs. Age-Banded Rating for group health insurance
The biggest change for the upcoming Hometown Health BANN renewal is the swap from age-banded to composite rating. The easiest way to think about the difference between the two is to imagine that joining a group health insurance policy is like buying a ticket to ride a carnival ride:
- Age-banded rating: Buying individual tickets – Everyone buys their own ticket, and prices vary based on age. Older people pay more because they’re statistically more likely to need medical care.
- Composite rating: Buying group tickets – Everyone buys tickets as a group based on the average age. The pricing is simpler because everyone pays the same amount, but younger people might pay a bit more to cover the costs of older people.
The biggest benefit of moving to a composite rating system for the upcoming BANN renewal is that everyone pays the same rate based on the group’s average age. You don’t have to worry about your rates going up as you get older — or breaking out the calculator to figure out your payment structure… The costs are much simpler and more stable.
Age-banded:
- Price based on individual age
- Fairer for individual risk
- Cost may vary greatly within the group
Composite:
- Price based on group’s average age
- Simpler and costs are more stable
- Older people pay less, younger people pay slightly more
What is the Builders Association of Northern Nevada (BANN)?
The Builders Association of Northern Nevada, or BANN for short, is a non-profit organization that supports the building industry in the area. They help their members by providing education and representation through collaborative efforts with the community and local leadership.
One of the ways they support members is by offering group health insurance plans through Hometown Health for small businesses in the construction industry. Members can come together and pool their resources to leverage better buying power for lower rates and better benefits for their employees.
Need help with this year’s BANN renewal?
There are always changes happening in the health insurance world. If you need assistance with your BANN renewal, would like to get a quote, or just have some questions, please reach out to one of Health Benefits Associate’s local advisors at 775-828-1216. Our team of experts keep up with changes in the healthcare landscape and will happily help you find the insurance solution that works for your business needs. Contact us today!
