Covered California Certified Enroller Practice Exam

How often does the rate change once it is set?

1. Monthly

2. Quarterly

3. Yearly

4. It does not change for the year

The correct answer is: It does not change for the year

The correct answer reflects that once the rates for health insurance are established for a given year, they generally do not change until the next annual open enrollment period. This means that enrollees can expect stable premiums throughout the year, providing them with predictability in budgeting for their healthcare expenses. This stability is crucial for consumers as it allows them to plan financially without the concern that their monthly premiums will fluctuate unexpectedly. Insurers typically set their rates based on extensive data analysis of projected costs and risk factors, which is why changes occur only at specific intervals related to the plan year, such as during the annual open enrollment period. Therefore, enrollees can count on their rates remaining constant for the duration of their coverage year, fostering a sense of security and trust in their health insurance plan.