ne_do3iThe Nebraska Department of Insurance has released a new bulletin stating that all health insurers in the major medical non-grandfathered (NGF) small group market will have an alternative rating method available that will be allowed for all policy years and rates implemented beginning on or after January 1, 2016.

It will only pertain to the ACA compliant Off-Exchange NGF small group market and does not include On-Exchange plans or Transitional NGF plans. This will be an optional methodology for issuers in the Nebraska small group market.

Composite Rating versus Individual per Member Rating

A carrier may choose not to provide family composite premiums, and just continue to use the individual per member method for all small groups.

If a carrier chooses to allow composite rating:

  • -They must make the method available for all small employers in the market.
  • -Each small employer must be allowed to choose whether they will use composite rating or standard per member rating.
  • -Only one method of composite rating will be allowed. See full Bulletin PDF for details.
  • -Carriers must specifically state in their actuarial memorandum they are using composite rating for the indicated period.


For more information on determining small group premiums and how to calculate composite premiums please see the full Bulletin released by the Nebraska Department of Insurance: Download PDF

If you have questions or concerns regarding this update please contact your Account Executive or call us at 402.330.8700 and we’ll be happy to assist.