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What type of rating method are small employer health policy carriers in Florida required to use for establishing premium rates?

A. Experience rating
B. Community rating
C. Issue age rating
D. Attained age rating

User Izissise
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1 Answer

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Final answer:

The correct option is B). In Florida, small employer health policy carriers must utilize community rating to set premium rates, mixing health risks among a group to mitigate adverse selection.

Step-by-step explanation:

Small employer health policy carriers in Florida are required to use community rating for establishing premium rates. This rating method is designed to spread risks among a group, helping to solve the adverse selection problem in health insurance markets. Community rating, by grouping together individuals with various health risks, reduces the insurance firm's concern of only attracting high-risk individuals. Under the Patient Protection and Affordable Care Act, the approach of providing health insurance via employment or through state-sponsored health exchange markets has become widespread.

User ViliusL
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