What is the community rating in the context of AARP Medicare Supplement Insurance?

Community rating refers to a pricing approach used in health insurance, including AARP Medicare Supplement Insurance, where all insured members within the same rating class pay the same premium regardless of individual health status, age, or other factors. This means that everyone in that group contributes equally to the cost of coverage, promoting fairness and accessibility to insurance.

This method contrasts with other rating systems where factors like age or health conditions could lead to different rates for members. By using community rating, insurers help to protect individuals from being charged higher premiums based on their health status and support a more equitable insurance system. It plays a crucial role in allowing older adults or those with pre-existing conditions to afford necessary healthcare coverage without the risk of being priced out due to their health circumstances.