By increasing demand, health insurance creates a. A deadweight loss related to overconsumption. b. A deadweight loss related to underconsumption. c. Neither of the above.
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A: Adverse selection occurs when there is asymmetric information between the seller and the buyer.
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- In Turkey, the general health insurance premium payment obligations are regulated?Explain the history of failed attempts to enact national health insurance in the United States.seventy-five percent of total costs of medicare part b are paid by federal general revenue and 25% is paid by premiums of those who elect to buy part b coverage. what is the medical loss ratio of this insurance plan? a) 150% b) 75% c) 500% d) 25%
- According to Health Economists, “more protection does not always leadto less disease”; using the concept of prevalence elasticity of demand for selfprotection explain with an aid of a diagram how this might be the case.While the individual mandate clause in the Affordable Care Act (also known as, Obamacare) was still in effect, which market failure in the market for health insurance did it help to reduce? Group of answer choices A.) Increasing Returns to Scale. B.) Moral Hazard. C.) Adverse Selection. D.) Barriers to Entry. E.) Externalities.10. A deductible reduces ________ in exactly the same way as ________. Question 10 options: a) moral hazard; cancellation of insurance b) moral hazard; coinsurance c) adverse selection; restrictive provisions d) adverse selection; limits on the amount of insurance
- Amanda owns an HO-2 Form in her home. If Amanda loses control and crashes through her hom, which coverage should be used in this case? coverage A less the deductible coverage B with no deductible coverage e with no deductible coverage F less the detectableMake the business case why healthcare providers should advocate for expansion of insurance coverage for the poorBecause Elaine has a family history of significantmedical problems, she buys health insurance,whereas her friend Jerry, who has a healthier family,goes without. This is an example ofa. moral hazard.b. adverse selection.c. signaling.d. screening
- Suppose a company has invented and patented a new effective drug to treat hay fever. The marginal cost of producing the drug is: MC = $4 . Without being covered in any insurance plan, the market demand is as follows: Qd = 800 -40P a. Suppose the drug is covered by a public health insurance plan with a co-insurance rate of 25% and everyone is eligible. What is the market demand under this insurance policy? What price should the company charge and what is the equilibrium quantity? a. Suppose now the public health insurer introduces the payment limit of $7.5 per unit of the drug; that is, the co-insurance rate of 25% applies if P less than or equal 10 (P<= 10), but the insurance only pays $7.5 per unit if P is greater than 10 P>10). Derive the new market demand. Under this new market demand, what price should the firm charge? Justify your answer.The AMA has been actively involved in shaping the regulation of nursing and other health care practioners. What are the arguments for and against the AMA determining the scope of legitimate activities for other health care practitioners?This is a Microeconomics problem. Explain how adverse selection can cause undesirable outcomes in a health insurance industry over time.