Intro to Public Health
Risk pooling is a strategy used in insurance and healthcare financing that combines the risks of multiple individuals or entities to reduce the overall financial burden on any single participant. By sharing the risk among a larger group, the likelihood of incurring high costs due to healthcare needs is spread out, making it more affordable for everyone involved. This concept is essential for creating sustainable health insurance models, as it allows for predictable costs and better financial management in healthcare systems.
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