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- 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%Which of he following provisions of an individual Accident and Heallh policy allows for nonpayment of premiums in lhe event of the insured's total disability? A.Grace Period B.Elimination Period C.Waiver of Premium D.Return of Premium2. A) Discuss health insurance contract? b)What schemes are applicable for routine medical check-up and diagnostic tests?
- Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000 and for the low risk, half that. If there are twice as many low risk as high risk individuals, and if the one insurer's administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy health insurance?2.) Two sources of inefficiency that managed care attempts to address are moral hazard and demand inducement. True or false? a. True b. FalseFor each of the following kinds of insurance, give anexample of behavior that reflects moral hazard andanother example of behavior that reflects adverseselection.a. health insuranceb. car insurancec. life insurance
- Do you think Canada's universal health care program can alleviate problems caused by moral hazard and adverse selection in the private insurance markets? Why or why not? John's utility curve over total wealth is given by U(W) =VW (i.e. square root of W). Suppose that he has a 50% chance of being healthy. If he is healthy, he gets all his wealth-$10,000. If he becomes sick, he only has $3,600 remaining after medical expenditures. Calculate John's wealth and utility when he does and does not get sick, his expected utility, expected wealth, and his expected loss. Now he has the option of buying health insurance Calculate the maximum amount John would be willing to pay to fully insure against the cost of the sickness. How much is the actuarially fair and risk premium? Suppose that society consists of large, equal numbers of identical male and identical female consumers. Male consumers are similar to John; female consumers differ only in that they face a 25% probability of being sick, but…a. If a pay-as-you-drive insurance program is being implemented to cope with automobile-related externalities associated with driving, what factors should be considered in setting the premium? b. Would you expect a private insurance company to take all these factors into account? Why or why not?Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate file traits they are seeking in a new employee?
- What is an actuarially fair insurance policy?(J) Define moral hazard and give an original example. Do you agree with this concept of moral hazard, explain your answer?• What are the main determinants in health disparities and how can these be modified to improve health status and create health equity in society? In addition to what is in the text, elaborate on these determinants and solutions based on observations that you have made in your own life. Provide references in APA style, please.Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000, and for the low risk, half that. If there are twice as many low risk as high risk individuals, and if the one insurer’s administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy health insurance? Note: administrative load can be construed as the amount that the insurer has in costs to run the plans above and beyond the "health care costs."