Creating age bands within each of your classes is the easiest way to increase employer savings. As you define the contribution strategy the focus should be on what is equitable not equal. Can every employee buy the same quality of coverage?
How to create age bands
You will start in the model your working on. You will click the three dots to the right of the class you're wanting to add age bands to. Select 'View' to open that class in your model.
Once you're in the class you've selected, you will want to add your age bands. To do that, you will add the starting number of the new age group to the age box and click the white 'Add' button. This will section out employees and begin categorizing them by their ages. Continue this step until you have as many age bands as you desire.
When starting out, we suggest that you begin with 10 year age bands and also have a 65+ age band so you can easily see what the Medicare population is for the group. We highly encourage agents to not use age bands smaller than 5 years as it makes the modeling process more complex for savings that are often very minor.
From here, you can adjust the employer contribution amount in each box at the center of the age band rows. To apply the amount you've input in the box, click the blue 'Set' button. You will have to click set each time you add a number to a box to apply the changes.
Remember that one of the ICHRA rules is that you cannot give an older person more than 3x the amount of money you're giving to a young person AND you can't give the younger people a higher contribution than the older people. This compliance piece is built into our software and will automatically make adjustments to the contribution amounts to meet the compliance standards.