A risk pool is the basic foundation of health insurance. In this context, a risk pool is the covered population whose health risks are spread across the pool of insured people enrolled in the insurance plan. Spreading risk among groups of insured people protects insurers because enrollees with lower health care costs offset those with higher health care costs. Generally, the larger the risk pool, the better the insurance companies are able to manage their ability to pay claims and provide benefits.
What Is a Capitated Payment?