Define the term "underwriting" in health insurance.

Underwriting in health insurance refers to the comprehensive process of evaluating risk and determining the appropriate premium rates for insurance policies. This is a critical function within the insurance industry, as it helps insurers assess the likelihood that a potential policyholder will make a claim based on their health history, lifestyle choices, and other risk factors.

Underwriters analyze various data, including medical records and actuarial data, to decide whether to provide coverage and what premiums should be charged to adequately reflect that risk. A well-executed underwriting process ensures that the insurer can maintain a balanced risk portfolio and remain financially viable while offering coverage to policyholders.

The other options relate to different aspects of health insurance operations. Paying claims pertains to the administrative function of processing reimbursements to policyholders, patient satisfaction surveys focus on service quality rather than financial evaluation, and negotiating fees with healthcare providers is part of network management and cost containment strategies. These aspects are important, but they do not encompass the core definition of underwriting.