What are high-risk pools in health insurance?

High-risk pools in health insurance are specialized insurance programs designed to provide coverage for individuals who have pre-existing conditions or health issues that make them more likely to incur higher medical costs. These pools allow individuals who might otherwise be denied coverage or charged exorbitant premiums due to their health status a chance to obtain necessary health insurance.

These programs are typically funded by the state or federal government or a combination of both and aim to ensure access to medical care for high-risk individuals who might find it challenging to obtain insurance in the standard market. By pooling together individuals with higher risks, insurers can spread the financial risk across a larger group and offer more stable premiums than what individuals might face if they sought coverage in the broader, traditional health insurance market.

This definition clarifies why the remaining options do not align with the concept of high-risk pools. High-risk pools are not aimed at high-income individuals, do not focus on providing discounts for healthy individuals, nor are they limited to covering only routine checkups. Instead, they specifically cater to those who face barriers to obtaining regular health insurance due to their health conditions.