What is the main purpose of risk assessment in health insurance?

The main purpose of risk assessment in health insurance is to determine premium rates. This process involves evaluating the health status and potential future medical needs of applicants to ascertain their level of risk to the insurer. By assessing various factors such as age, medical history, lifestyle choices, and existing health conditions, insurers can better predict the expected costs associated with covering a particular individual or group.

Determining premium rates based on this assessment ensures that the insurance company can remain financially viable while providing adequate coverage. It allows insurers to set prices that reflect the risks presented by specific policyholders, thus balancing the costs of claims they may need to pay against the income from premiums collected.

While some other options mention aspects of risk assessment, they do not accurately reflect its main purpose. Discouraging high-risk individuals or providing coverage only to low-risk individuals are actions that could arise from risk assessment outcomes, but they are not its primary goals. Eliminating all health-related claims is not feasible or realistic within the health insurance framework, as the fundamental purpose of health insurance is to cover claims resulting from health issues.