A key characteristic of community rating is:

Community rating is a pricing system used in health insurance where premiums are set based on the collective health of a community or population rather than the individual health status or history of the insured persons. This approach results in uniform pricing for health insurance premiums, meaning that individuals within the same community or risk pool will generally pay the same premiums, regardless of their individual health conditions or medical histories.

This method aims to ensure that individuals with higher health risks do not face disproportionately high premiums, thereby promoting access to insurance coverage for all members of the community. The overall goal of community rating is to make health insurance more equitable and affordable, especially for those who might be disadvantaged in a system that uses individual risk assessment for pricing.

In contrast, options that involve customization of plans based on individual needs or vary premiums based on health history do not align with the principles of community rating, as they would create disparities in cost based on personal health situations. Increased competition among insurers is typically a feature of an insurance market but doesn't specifically relate to the characteristic of community rating.