What three rating rules may be used to determine health insurance premiums for a non-grandfathered plan?

The correct answer involves understanding the factors that can influence health insurance premiums under the Affordable Care Act (ACA), particularly for non-grandfathered plans. The three rating rules that are used to determine health insurance premiums include age, geographical area, and tobacco use.

Age is a significant factor in premium determination since older individuals typically require more medical care, thus leading to higher premiums compared to younger individuals. Geographic location also plays a crucial role, as the cost of healthcare services can vary widely between different areas, impacting premium rates. Tobacco use is a critical consideration because individuals who use tobacco products are generally at a higher risk for certain health issues, warranting higher premiums for those who smoke compared to non-smokers.

The other options do not accurately reflect the ACA’s guidelines for premium rating. For instance, income is relevant to determining subsidies rather than premiums directly, and health status is not permissible as a rating factor for non-grandfathered plans. Family size can influence coverage needs but is not a direct rating factor in calculating premiums. This highlights the importance of understanding the correct regulation and framework that governs health insurance premiums for individuals under non-grandfathered plans.