Risk Pooling: How Health Insurance in the Individual ...

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1. What is risk pooling? “In general, the larger the risk pool, the more predictable and stable the premiums can be.” Is the size of a risk pool the only factor?

   In Coverage model design

2. Is the size of a risk pool the only factor? “No. Although larger risk pools are typically more stable, a large risk pool does not necessarily mean lower premiums.” What is “adverse selection”?

   In Coverage model design

3. What is risk pooling? “A health insurance risk pool is a group of individuals whose medical costs are combined to calculate premiums.” Is the size of a risk pool the only factor?

   In Coverage model design

4. Is the size of a risk pool the only factor? “The key factor is the average health care costs of the enrollees included in the pool.” What is “adverse selection”?

   In Coverage model design

5. Is the size of a risk pool the only factor? “Just as a pool with healthy individuals can result in lower-than-average premiums, a large pool with a large share of unhealthy individuals can have higher-than-average premiums.” What is “adverse selection”?

   In Coverage model design

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