EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 22, Problem 15DQ
To determine
Reasons for PPACA’s attempt to expand insurance coverage to all Americans so costly.
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Students have asked these similar questions
Health care expenditures coming directly out of consumers' pockets, primarily in the form of deductibles and
copayments, account for what
care spending?
O 18 percent
35 percent
44 percent
O 21 percent
la. 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."
a. $7500
b. $6000
c. $12,000
d. $8000
2a. Now suppose insurance rules are changed to permit a new insurer (B) to enter this
marketplace and be allowed to exclude the high risk due to pre-existing condition exclusions
while the other incumbent insurer (A) is forced to still charge a community rate (as in the ACA).
Assuming loads remain at 20% in long run equilibrium, what would the premiums be in each
market, (low risk, high risk)?
a. $5000,…
18. Which of the following best describes the major problems of health care in the U.S?
O Poor results - U.S. lifespan is among the lowest of the high-income countries while infant mortality is among
the highest.
Both high costs and poor results in terms of life span and infant mortality.
Lack of choice - there is only one U.S. health insurer, which is a regulated monopoly.
High costs - the U.S. spends more on health care than any other country.
Chapter 22 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 15DQCh. 22 - Prob. 16DQCh. 22 - Prob. 17DQCh. 22 - Prob. 18DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Prob. 6RQCh. 22 - Prob. 7RQCh. 22 - Prob. 1PCh. 22 - Prob. 2PCh. 22 - Prob. 3P
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