I’d expect this to be causing people who live in low-risk areas to be subsidizing people who live in high risk areas
To be fair, high-risk people are subsidized in nearly every type of insurance. Often unintentionally (due to actuarial uncertainty) but sometimes it is an explicit goal.
For example, community rating was deliberately introduced to health insurance in order to cause lower risk people to subsidize high risk people (eg those with preexisting conditions).
To be fair, high-risk people are subsidized in nearly every type of insurance. Often unintentionally (due to actuarial uncertainty) but sometimes it is an explicit goal.
For example, community rating was deliberately introduced to health insurance in order to cause lower risk people to subsidize high risk people (eg those with preexisting conditions).