Federal premium rate reforms – rating areas
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Defines Alabama's rating areas (13 total) for application of federal premium rate reforms for individual and small group health insurance plans beginning January 1, 2014; affects insurers writing health insurance in Alabama.
No material clinical or coverage changes in this revision.
Alabama Geographic Rating Areas
Alabama geographic rating areas (Appendix A)
Geographic rating area assignments for the individual and small group markets in Alabama are specified by rating area number and county.
Appendix A — Rating area definitions
- Rating Area 1: County list: Calhoun.
- Rating Area 2: County list: Lee.
- Rating Area 3: County list: Bibb; Blount; Chilton; Jefferson; St. Clair; Shelby; Walker.
- Rating Area 4: County list: Russell.
- Rating Area 5: County list: Lawrence; Morgan.
- Rating Area 6: County list: Geneva; Henry; Houston.
- Rating Area 7: County list: Colbert; Lauderdale.
- Rating Area 8: County list: Etowah.
- Rating Area 9: County list: Limestone; Madison.
- Rating Area 10: County list: Mobile.
- Rating Area 11: County list: Autauga; Elmore; Lowndes.
- Rating Area 12: County list: Montgomery; Greene; Hale; Tuscaloosa.
- Rating Area 13: County list: Baldwin; Barbour; Bullock; Butler; Chambers; Cherokee; Choctaw; Clarke; Clay; Cleburne; Coffee; Conecuh; Covington; Crenshaw; Cullman; Dale; Dallas; DeKalb; Escambia; Fayette; Franklin; Jackson; Lamar; Macon; Marion; Marengo; Marshall; Monroe; Perry; Pickens; Pike; Randolph; Sumter; Talladega; Tallapoosa; Washington; Wilcox; Winston.
Administrative Rating Area Determination
Rating area determination (administrative)
Alabama will apply the rating area "default" from 45 C.F.R. § 147.102(b)(2): the state is divided into 13 rating areas for the individual and small-group markets — the 12 metropolitan statistical areas plus one rating area comprising all non‑metropolitan statistical areas. Insurers must use these 13 rating areas for premium rating in policy or plan years beginning on or after January 1, 2014.
- Applies the 45 C.F.R. § 147.102(b)(2) rating area default to Alabama.
- Creates 13 rating areas: 12 metropolitan statistical areas + 1 non‑metropolitan area.
- Effective for policy or plan years beginning January 1, 2014.
Key Terms
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