Small Group Benchmarking: Flexible Age-Banded Rate Modeling

Benefits benchmarking has always been easier for large employers. They have more data. Their plan structures are more standardized. The sample sizes are bigger.

Small groups? They've been underserved. Until now.

Today, we're launching flexible age-banded rate modeling for small group benchmarking.

The Small Group Challenge

Small group health insurance works differently than large group. Instead of composite rates, carriers typically use age-banded pricing—different premiums for different age brackets. This makes apples-to-apples comparisons tricky.

How do you compare a 50-person company with an older workforce to a 30-person startup with employees in their twenties? The rates look completely different, even if the underlying plan designs are similar.

Traditional benchmarking tools either ignore small groups entirely or force them into large-group frameworks that don't fit.

Our Solution

Bnchmrk's small group benchmarking normalizes for demographic differences. Upload your age-banded rates, provide basic census information, and we'll generate comparisons that account for age distribution.

What you can benchmark:
• Plan design elements (deductibles, copays, OOP maximums)
• Employer contribution strategies
• Age-adjusted rate comparisons

How it works:
1. Calculate the median age of the eligible workforce
2. Identify the per-member rate for the corresponding age band
3. Apply Bnchmrk-provided slope ratios to derive rates for other tiers (spouse, child, and family)
4. Calculate employee contributions if they are percentage-based
5. Enter the calculated gross premiums and employee contribution amounts, then select Age-Banded to classify the rates

Why This Matters

Small employers deserve good benchmarking data too. A 75-person company is making decisions that affect real people and real budgets. They shouldn't have to guess whether their benefits are competitive.

For consultants, small group benchmarking opens up a market segment that's been difficult to serve with data. Now you can walk into a small employer meeting with the same confidence you bring to large group clients.

The Small Group Opportunity

Small and mid-size employers often have less sophisticated HR functions. They rely more heavily on their brokers and consultants for guidance. Being able to say "here's exactly where you stand against other employers your size" is incredibly valuable to them.

Small group benchmarking is available now in the Bnchmrk platform.