Health Plan Finance and Risk Management
Question No. 1
The Norton Health Plan used blended rating to develop a premium rate for the Roswell Company, a large
employer group. Norton assigned Roswell a credibility factor of 0.7 (or 70%). Norton calculated Roswell’s
manual rate to be $200 and its experience claims cost as $180. Norton’s retention charge is $3. This
information indicates that Roswell’s blended rate is:
Choose the correct option from the given list.
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