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. |