Age-Banded Medical Plans Now Cap Costs at 3 Children Under 21

Age-banded medical plans can now cap dependent child costs so employees do not pay for more than three children under 21, while still covering additional children at no added cost. This means more teams can rely on age-banded rates instead of manually calculating variable costs.

Age-banded medical plans now include an optional setting that limits cost calculations to the three oldest dependent children under age 21. This supports common age-banded plan pricing and helps ensure employees see the correct cost during enrollment, without admins needing to maintain variable-rate pricing to stay accurate.

You can determine this setting in a medical plan that is configured as Age-Banded and includes Employee+Children and Employee+Family coverage levels. For new age-banded plans, it defaults to including only the oldest three children under 21. For existing age-banded plans, it defaults to including all employees. If a plan changes from Variable Rate to Age-Banded, the setting defaults to including only the oldest three children under 21.

When an employee selects more than three children under 21 during enrollment, the system will calculate costs using only the three oldest. Any additional children under 21 are still covered, but they do not increase the cost shown on the plan card. The same calculation applies during admin approval when an admin reviews an employee’s elections.

As always, we love your feedback! To provide product feedback on this feature and more, head over to our product feedback page and let us know how we’re doing.