Plan providers use mortality tables and morbidity tables to determine the terms and premium amount,a decision-making process known as experience ratings.(Defining and Exploring Health-Care Plans)

Question

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Experience ratings are determined based on the historical claims data of a specific group, not directly by mortality or morbidity tables. Mortality and morbidity tables are used to assess the overall risk and set base rates, but experience ratings adjust premiums based on the actual claims experience of the insured group.

Plan Providers Use Mortality Tables and Morbidity Tables to Determine