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The following statements are about rate ratios used by health plans.

The following statements are about rate ratios used by health plans. Select the answer choice containing the correct statement:

A.

While rate ratios consider family size, they are most often based on competitive factors, such as the ratios being used by competitors and the ratios that plan sponsors are requesting.

B.

If the rate ratio for a couple rate category is 2.0, then the single premium is divided by 2.0 to derive the couple rate category premium.

C.

A rate ratio can only be increased if the health plan has obtained regulatory approval.

D.

The effect of a typical family rate ratio is that a family rate is somewhat higher than it otherwise should be, and the single rate is somewhat lower that it otherwise should be.

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