Rate Calculation Methods

Rate calculations apply a calculation method to values that you define or values that participants enter during enrollment.

The following calculation methods are available for computing rates:

Calculation Method	Description
Flat amount	Predefined or entered during enrollment.
Multiple of compensation	Calculates rate as multiple of participant's compensation amount
Multiple of coverage	Calculates rate as multiple of total coverage amount
Multiple of parent rate	For child rates only, calculates rate as multiple of the parent (primary activity) rate
Multiple of parent rate and coverage	For child rates only, calculates rate as multiple of both parent rate and coverage amount
Multiple of coverage and compensation	Calculates rate as multiple of both coverage and compensation
No standard value used	Uses rate defined in variable rate profiles
Set annual rate equal to coverage	Uses total coverage as the annual rate amount
Post enrollment calculation formula	Calculates rate based on election information entered during enrollment using a formula you define
Calculate for enrollment formula	Calculates rate on enrollment using a formula you define

The calculation method you select works with other settings to compute the final rate.

Condition	Related Configuration
Calculations using multiples	Specify the operation, such as simple multiplication, percentage, or per hundred.
Calculations based on compensation	Specify the compensation factor that defines the basis for the compensation calculation, such as weekly stated salary or stated annual salary.
If you enable participant entry	You can set valid ranges, default values, and increment values, as applicable. The default values apply if you recalculate rates and no user entered value is available.
Partial month enrollment	You can define a prorated rate.
Rounding	Select a rounding rule.
Limits	Define high and low limits.
Variable rates	Attach variable rate profiles to the standard rate.