for instance compulsory health insurance with community rated premiums eg the basis of the swiss health care system offers a high degree of risk pooling with minimal income redistribution the presence of many social insurance funds results in fragmented risk pools which lower risk pooling but riskadjustment mechanisms eg switzerland netherlands germany can mitigate this problem community rated premiums allow for a larger degree of risk pooling than risk rated ones as the latter enable to pool people with approximately the same level of risk only