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Community Rating

A method of setting premiums so that risk is spread evenly across the community, with all individuals in a community paying the same premium rate regardless of their health status and other factors such as age, gender, and other characteristics.

A variation of community rating is adjusted community rating where health insurance plans cannot vary their rates based on health status but can use other factors, such as age and smoking-status. However, the Affordable Care Act (ACA) limits this by not allowing health insurance plans to charge an older adult more than 3 times the rate of a younger person. Washington currently uses adjusted community rating.