Experience Rating Methods Can Be Either Prospective or Retrospective

Experience rating methods can be either prospective or retrospective. With regard to these types of experience rating methods, it can correctly be stated that

A) A health plan typically can expect much higher profit levels from using retrospective experience rating rather than prospective experience rating a health plan using prospective experience rating is more likely than a
B) Health plan using retrospective experience rating to have to pay an experience rating dividend if a group's experience has been better than expected during the rating period
C) The premium determined under retrospective experience rating is usually higher than the premium under prospective experience rating
D) Most states require HMOs to use retrospective experience rating rather than prospective experience rating