A type of community rating in which prepaid premium rates may vary from group to group based on demographic “class” differences, such as age, sex, marital status, etc. All enrollees in the same class, however, must receive the same rates, no matter which group they belong to. Using this method of rate setting preserves the feature of not penalizing those with a history of illness, but yet accounts for the fact that age, for instance, is related to the amount of health services required.