the relationship between community rating and economic efficiency
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Explain the relationship between community rating and economic efficiency.
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Using references, this solution epitomizes the relationship between community rating and economic efficiency.
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Community rating is the subsidizing of insurance rates of high risk groups of people through groups of low risk people paying higher than usual premiums to help cover the additional costs. "Insurers required to underprice (relative to expected benefits cost plus loading) for higher risks must overprice policies sold to lower risks in order to cover their total ...
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