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.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text: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.
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