Community Rating A Cure Worse Than the Disease

Brief Analyses | Health

No. 114
Wednesday, July 06, 1994

Under "community rating" health insurers are required to charge the same premium to every policyholder, regardless of their expected health care costs. Under "modified" community rating, premiums may be adjusted by age and sex. Both types of regulation allow people who are already sick to purchase health insurance for the same price as those who are healthy.


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