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A risk group can be defined as a group that shares roughly 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: 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.

A Quick Response will be appreciated

How does the imperfect information in insurance markets cause an  increase in health care costs? Explain with great detail.

PRINCIPLE OF HEALTHCARE FINANCE

An important distinction in health insurance is between the list price (PL) and out-of-pocket price (PP) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price.   Now assume the consumer is part of a partial insurance plan with a coinsurance provision. Her insurance pays 50% of all medical expenses. Consider again the relationship between PL and PP and plot a coinsurance plan demand curve in PL - Q space. Label this curve D3. Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of $25 for each unit of Q. Consider again the relationship between PL and PP and plot a copayment-plan demand curve in PL - Q space. Label this curve D4.

Health maintenance organizations (HMOs) provide health care to participants without requiring them to file insurance claims. a. True O 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.

We said in our Risk Management and Insurance Planning course that Traditional/Non-Guaranteed Life Insurance could be thought of as a combination of Term Life insurance and the Cash Value account feature of Whole Life insurance. Which of the two components provides a death benefit/insurance payout if needed? Term Life component Cash Value account A combination of the Term Life component & Cash Value account None of the above

3. Why is it important for insurance companies to have a large pool of people paying premiums?

List the few factors you should consider when evaluating the benefits of health insurance .What are the policy's sibling benefits? What exceptions lead to an emergency room visit? What is the potential cost of coverage ?

Give three examples of : Liabilities in a Healthcare organization (name the organization you are thinking of)

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?

what is the dilemma faced by health care finance managers in light of the ultimate goals of health care finance?

How does the Health Insurance Portability and Accountability Act (HIPAA) facilitate electronic transactions?