Age Curve for the Individual and Small Group Health Insurance Market

[LOGO] KAY IVEY GOVERNOR JIM L. RIDLING COMMISSIONER STATE OF ALABAMA DEPARTMENT OF INSURANCE 201 MONROE STREET, SUITE 502 POST OFFICE BOX 303351 MONTGOMERY, ALABAMA 36130-3351 TELEPHONE: (334) 269-3550 FACSIMILE: (334) 241-4192 INTERNET: www.aldoi.gov DEPUTY COMMISSIONERS CHARLES M. ANGELL JERRY WORKMAN CHIEF OF STAFF MARK FOWLER CHIEF EXAMINER RICHARD L. FORD STATE FIRE MARSHAL SCOTT F. PILGREEN GENERAL COUNSEL REYN NORMAN ## BULLETIN NO. 2018-02 TO: All Insurers Writing Health Insurance in Alabama FROM: Jim L. Ridling Commissioner of Insurance JLR DATE: June 14, 2018 RE: Age Curve for the Individual and Small Group Health Insurance Market EFFECTIVE: Immediate In the Annual Notice of Benefit and Payment Parameters for 2018 and 45 CFR 147.102(d), the U.S. Department of Health and Human Services defined uniform age bands for rating purposes under section 2701 of the Public Health Service Act. The notice and regulation also allowed States to establish a uniform age rating curve for the individual market, small group maket or both markets. The selected age rating curve would specify the relative distribution of rates across all age bands. For the 2019 plan year, Alabama establishes the following age rating purposes: - Individual Market shall use Table 1 attached to the Bulletin - Small Group Market shall use Table 2 attached to this Bulletin. For questions, please contact Steve Ostlund, Life and Health Actuary, at steve.ostlund@insurance.alabama.gov or (334) 240-4424. JLR/WR/bc attachment Alabama Department of Insurance Established 1897 Table 1 | 2019 Age Curve for Individual Market | | | | | --- | --- | --- | --- | | Age | Ratio | Age | Ratio | | 0 | 0.635 | 33 | 1.198 | | 1 | 0.635 | 34 | 1.214 | | 2 | 0.635 | 35 | 1.222 | | 3 | 0.635 | 36 | 1.230 | | 4 | 0.635 | 37 | 1.238 | | 5 | 0.635 | 38 | 1.246 | | 6 | 0.635 | 39 | 1.262 | | 7 | 0.635 | 40 | 1.278 | | 8 | 0.635 | 41 | 1.302 | | 9 | 0.635 | 42 | 1.325 | | 10 | 0.635 | 43 | 1.357 | | 11 | 0.635 | 44 | 1.397 | | 12 | 0.635 | 45 | 1.444 | | 13 | 0.635 | 46 | 1.500 | | 14 | 0.635 | 47 | 1.563 | | 15 | 0.635 | 48 | 1.635 | | 16 | 0.635 | 49 | 1.706 | | 17 | 0.635 | 50 | 1.786 | | 18 | 0.635 | 51 | 1.865 | | 19 | 0.635 | 52 | 1.952 | | 20 | 0.635 | 53 | 2.040 | | 21 | 1.000 | 54 | 2.135 | | 22 | 1.000 | 55 | 2.230 | | 23 | 1.000 | 56 | 2.333 | | 24 | 1.000 | 57 | 2.437 | | 25 | 1.004 | 58 | 2.548 | | 26 | 1.024 | 59 | 2.603 | | 27 | 1.048 | 60 | 2.714 | | 28 | 1.087 | 61 | 2.810 | | 29 | 1.119 | 62 | 2.873 | | 30 | 1.135 | 63 | 2.952 | | 31 | 1.159 | 64 and Older | 3.000 | | 32 | 1.183 | | | Table 2 | 2019 Age Curve for Small Group Market | | | | | --- | --- | --- | --- | | Age | Ratio | Age | Ratio | | 0 | 0.765 | 33 | 1.198 | | 1 | 0.765 | 34 | 1.214 | | 2 | 0.765 | 35 | 1.222 | | 3 | 0.765 | 36 | 1.230 | | 4 | 0.765 | 37 | 1.238 | | 5 | 0.765 | 38 | 1.246 | | 6 | 0.765 | 39 | 1.262 | | 7 | 0.765 | 40 | 1.278 | | 8 | 0.765 | 41 | 1.302 | | 9 | 0.765 | 42 | 1.325 | | 10 | 0.765 | 43 | 1.357 | | 11 | 0.765 | 44 | 1.397 | | 12 | 0.765 | 45 | 1.444 | | 13 | 0.765 | 46 | 1.500 | | 14 | 0.765 | 47 | 1.563 | | 15 | 0.833 | 48 | 1.635 | | 16 | 0.859 | 49 | 1.706 | | 17 | 0.885 | 50 | 1.786 | | 18 | 0.913 | 51 | 1.865 | | 19 | 0.941 | 52 | 1.952 | | 20 | 0.970 | 53 | 2.040 | | 21 | 1.000 | 54 | 2.135 | | 22 | 1.000 | 55 | 2.230 | | 23 | 1.000 | 56 | 2.333 | | 24 | 1.000 | 57 | 2.437 | | 25 | 1.004 | 58 | 2.548 | | 26 | 1.024 | 59 | 2.603 | | 27 | 1.048 | 60 | 2.714 | | 28 | 1.087 | 61 | 2.810 | | 29 | 1.119 | 62 | 2.873 | | 30 | 1.135 | 63 | 2.952 | | 31 | 1.159 | 64 and Older | 3.000 | | 32 | 1.183 | | |