What is "community rating" in health insurance?

Community rating in health insurance refers to a model where all members of a given group pay the same premium regardless of their individual health status or risk profile. This approach is designed to promote fairness and accessibility in healthcare coverage, ensuring that individuals with pre-existing conditions, older age, or higher health risks are not penalized with higher premiums. It aims to spread the financial risk across a larger pool of insured individuals, making health insurance more affordable for everyone, especially those who might otherwise struggle to obtain coverage.

This system contrasts with other rating methods that consider health status or individual risk factors in determining premiums. By maintaining a uniform premium rate, community rating ensures that healthcare remains accessible and equitable, aligning with principles of social justice in health policy.