Georgia Navigator Practice Exam

Rates based on family composition must charge separate premiums for each member based on age and what?

1. Location

2. Health status

3. Gender

4. Pre-existing conditions

The correct answer is: Gender

In the context of health insurance, separate premiums based on family composition take into account various factors influencing the cost of coverage for each member. One essential element that determines the premium is gender. This is due to the fact that gender can have a significant impact on health risks and healthcare costs. Historically, insurance models have considered that different genders may utilize healthcare services at varying rates, leading insurers to calculate premiums accordingly. Charging different premiums by gender allows insurers to align the costs of providing coverage more closely with the anticipated healthcare costs for males and females. Although other factors such as location, health status, and pre-existing conditions may also affect an individual's health insurance pricing, the specific focus of this question pertains to the common practice of using gender as a determining factor in the pricing structure of family health insurance plans.