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Group & Health Core Exam Old Group & Health Design & Pricing Forum

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Old 04-17-2012, 09:58 PM
Astrogala Astrogala is offline
Join Date: Jan 2010
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Default Fall 2009#3

In calculating family credits, why don't we use the credits of the highest cost employee for families (i.e. $6,508*80%) but the average cost for all families ($5,423*80%)?
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Old 04-18-2012, 10:46 AM
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MATE Seminars MATE Seminars is offline
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Under this approach, you want to give enough credits so the highest cost (family) employees can repurchase their prior coverage without additional cost. In this problem, the prior plan did not have options A, B, and C. Rather, there was just one option in the prior plan. So we need to calculate the average cost of families in that one option, which then happens to be the average cost of all families.
Mark Bird
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Old 04-21-2012, 03:32 PM
Astrogala Astrogala is offline
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Thanks Mark!
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