With regard to the major risk factors associated with group underwriting, it can correctly be stated that, typically,

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A large group is more likely to exhibit a consistent claims pattern, level of healthcare cost, or utilization of services than is a small group. This is because larger sample sizes tend to be more representative of the population and therefore have less variation. It is important for a health plan to track demographic factors of groups and adjust for them to ensure fairness and accuracy in underwriting. The product design and delivery system of a health plan can also have an impact on member selection, even in a multiple option environment. The age and gender of group plan members can be predictors of utilization of health services by group members, so they are important risk factors to consider.

With Regard to the Major Risk Factors Associated with Group