A risk group can be defined as a group that shares roughly the same risks of an adverse event occurring. Insurancecompanies often classify people into risk groups, and charge lower premiums to those with lower risks. How does thispractice effect the market for healthcare?Select the correct answer below:If people are not separated into risk groups, then those with low-risk must pay for those with high risks.When people are classified into risk groups each pays according to their risk.O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care.All of the above.

Risk is something which is bear by insurance company in consideration of premium that they have…

A risk group căn be đefined as a group that shares ghly the same risks of an adverse event occurring. Insurance companies often classify people into risk groups, and charge lower premiums to those with lower risks. How does this practice effect the market for healthcare? Select the correct answer below: O If people are not separated into risk groups, then those with low-risk must pay for those with high risks. O When people are classified into risk groups each pays according to their risk. O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care. All of the above.

A risk group căn be đefined as a group that shares ghly the same risks of an adverse event occurring. Insurance companies often classify people into risk groups, and charge lower premiums to those with lower risks. How does this practice effect the market for healthcare? Select the correct answer below: O If people are not separated into risk groups, then those with low-risk must pay for those with high risks. O When people are classified into risk groups each pays according to their risk. O When risk group are used to establish the cost of health care those with high risk cannot afford the cost of care. All of the above.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter11: Planning For Health Care Expenses

Section: Chapter Questions

Problem 4LTAI

See similar textbooks

Similar questions

Indicate whether the statement is true, false, or unclear, and justify your answer.On average, observed mortality rates are higher for people who buy life insurance than for people who do not. This is best taken as evidence in favor of adverse selection in life insurance markets.
How can a patient benefit if the premiums paid are more than the cost of the medical care received? How can an insurance company benefit if the medical care it provides costs more than the premiums paid in?
1) Please give and explain the numerical example of adverse selection that arises in life insurance market?
You would have a better chance of insurance coverage for medical services not provided by the network with a preferred provider organization (PPO) than with a health maintenance organization (HMO) plan. Group of answer choices a. True b. False
Which is Idemenity Plan and which is Managed Care Plan? Insureds create contract with an insurer who does not provide health care services The higher the deductible, the lower the premium Insured receive health care services from a designated group of providers May not even involve an insurance company No annual deduction is incurred, but a small co-payment may be required I most value the freedom of choice and am willing to pay for it. Cost is my most important consideration. I’d rather have the flexibility of either having the insurance company reimburse me or directly paying the health care provider.
The Patient Protection and Affordable Care Act limits the extent to which insurers may consider age in establishing rates. The result is higher premiums for younger insureds and lower premiums for older insureds. In your opinion, is this a good result?
How does the imperfect information in insurance markets cause an increase in health care costs? Explain with great detail.
Discuss the potential for adverse selection when insureds exercise the renewability or convertibility option in a term life insurance policy. Which is more likely to be affected by adverse selection.
How can moral hazard lead to more costly insurance premiums than one was expected?
The transfer the risk from an insured individual to a group to minimize the possibility of losses is a concept known as? a. Underwriting risk b. Adverse selection c. Loss risk exposure d. Risks pooling
Do risk influence people to go for insurance? What is the relationship between risk and insurance?
The executive team is debating offering a standard group health insurance plan with a healthcare flexible spending account (FSA) or a high deductible group health insurance plan with a health savings account (HSA). They believe they understand the differences between the two group health insurance plans but are less clear on how FSAs and HSAs differ. Explain in clear language the differences between FSAs and HSAs so they can make an informed decision.