Community rating
Hi there! Do you know what health insurance is? It's when you pay a certain amount of money to a company every month, and they promise to help pay for your medical expenses if you get sick or hurt.
Now, community rating is a way that health insurance companies decide how much to charge people for their monthly payments. They group people into communities based on things like age, gender, and where they live.
Then, they look at how many people in each community are getting sick or hurt each year, and how much money they need to pay for their medical expenses. Based on that information, they decide how much each person in that community should pay each month for their insurance.
The idea behind community rating is that everyone in a community should pay similar amounts for their insurance, depending on how much medical care they need. That way, people who are sicker or older aren't charged more than they can afford, and people who are healthier aren't charged less just because they're less likely to get sick.
It's kind of like when you and your friends all go out for pizza, and you decide to split the bill evenly. Everyone pays the same amount, just like everyone in a community pays a similar amount for their insurance.
Does that make sense? Let me know if you have any questions!
Now, community rating is a way that health insurance companies decide how much to charge people for their monthly payments. They group people into communities based on things like age, gender, and where they live.
Then, they look at how many people in each community are getting sick or hurt each year, and how much money they need to pay for their medical expenses. Based on that information, they decide how much each person in that community should pay each month for their insurance.
The idea behind community rating is that everyone in a community should pay similar amounts for their insurance, depending on how much medical care they need. That way, people who are sicker or older aren't charged more than they can afford, and people who are healthier aren't charged less just because they're less likely to get sick.
It's kind of like when you and your friends all go out for pizza, and you decide to split the bill evenly. Everyone pays the same amount, just like everyone in a community pays a similar amount for their insurance.
Does that make sense? Let me know if you have any questions!