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Risk pooling in health insurance refers to the process of combining the financial risks of a large group of individuals so that the cost of healthcare expenses is shared among all members of the pool. In health insurance systems, people contribute money in the form of premiums or other payments into a common fund, which is then used to pay for the medical expenses of those members who require healthcare services. The basic principle behind risk pooling is that while individual healthcare needs are uncertain and unpredictable, the healthcare costs of a large population can be estimated with greater accuracy. Health risks are not equally distributed among individuals. Some people may remain healthy for a long period and require very little medical care, while others may face serious illnesses, accidents, or chronic conditions that __________ ________ ________ __________ __________ ____ _____.
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