In the pure community rating approach to health insurance premium pricing, all policyholders in an area pay:
A) a premium equal to the premium payable to the federal or state insurance exchange for a similar insurance policy.
B) premiums based on their family size, where they live, whether they use tobacco, and their age.
C) the same premium without regard to their personal health, age, or gender.
D) the premium as a contribution to a community pool of funds and utilize it on as-needed basis.
E) premiums at varied rates based on their health status or claim history.

Question

Quizplus · Accepted Answer

In the pure community rating approach, all policyholders in a particular area pay the same premium, regardless of their personal health, age, or gender. This approach aims to provide equal access to health insurance for everyone in a particular community.

In the Pure Community Rating Approach to Health Insurance Premium