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What is an RAF?

April 26, 2017raf

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What is an RAF?

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Posted

Insurance carriers use the RAF (Rate Adjustment Factor) for Small Group plans that allows the carrier to adjust the published age-bracketed, zip code based premiums for any of their offered Group plan designs. California AB1672 law requires carriers to Guarantee Issue coverage to any legitimate employer of 2 – 50 employees regardless of pre-existing medical conditions. RAF adjustments cannot vary premiums from a low of .90 or a high of 1.10 of the published Standard rate. Insurance carriers are allowed to use variable criteria (i.e. group size, industry, health histories, etc.) to determine the assigned RAF, but are not allowed to decline coverage to the group.