Risk pools are high-risk health insurance plans organized by a state to serve high-risk individuals who do not have access to group insurance.

• A. True
• B. False
• C. Only for federal employees
• D. Not used in most states

Answer: (A)

The idea behind risk pools is to make coverage available to those who are most likely to incur high medical costs and who can’t access typical group insurance. A state runs a high‑risk pool as a separate plan or program to pool this risk, so individuals with serious health needs who otherwise would struggle to obtain coverage can obtain insurance, often with higher premiums or specific eligibility rules. This setup aims to prevent people with health issues from being priced out of the market or denied access altogether. Historically, many states created these high‑risk pools to fill gaps in the individual market before broader reforms, and while ACA changes have shifted how these risks are handled in many places, the fundamental concept remains the same: a state‑organized option designed for high‑risk individuals without access to group coverage.