In the US, private health insurance is usually purchased by groups rather than individuals. For example, most people are insured through their employer or their spouse’s employer. Which type of distortion does the insurance company need to worry about with individuals purchasing insurance versus groups? Why is group insurance preferable for the employer? Why is this preferable for the individual?

Q: Demand falls by 5 percent for every 10 percent increase in price health care services.

A: Price elasticity of demand: Price elasticity of demand is defined as the percentage change in the…

Q: 1. Is this MD a quack(fraud) or legitimate MD? 2. Is there any science to support his work? Are…

A: Cancer is routinely ranked as one of the most serious health issues confronting the United States.…

Q: 2. Senator Lee, making the case for universal, free health care, argues that we don't need to worry…

A: Demand for health care depends on the level of consumption of an individual in case of illness and…

Q: An important distinction in health insurance is between the list price (PL) and out-of-pocket price…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How does a favorable tax treatment and a third-party payer system attribute to the rise of health…

A: To put it simply, a third-party payer is someone who pays for medical services on behalf of someone…

Q: What is the effect of managed care programs on the affordable care act? (In other words how has…

A: INTRODUCTION  38 states and Washington, D.C. have embraced the Medicaid development. As of June…

Q: On Asymmetric Information and Agency What is a reputation good? What are examples of reputation…

A: Market demand refers to the total quantity of a good or service that consumers in a specific market…

Q: Even though the total cost of an uninsured hospital stay is lower, why would an uninsured person…

A: There are several reasons why an uninsured person may end up paying more for a hospital stay…

Q: What is the significance when it comes to asymmetric information  to show it's efficient function of…

A: Adverse selection can lead to market failure, as the less-informed party may not be willing to…

Q: Which situation is most likely to create an incentive for doctors to perform unnecessary procedures…

A: The situation most likely to create an incentive for doctors to perform unnecessary procedures is: a…

Q: n insured is employed by a manufacturing company that provides group health coverage for its…

A: Insurance policy: An insurance strategy is a legitimate policy between the insurance agency (the…

Q: How much is Jane’s deductible?  What percentage of the bill does Jane’s health care plan pay once…

A: When Jane hasn't reach her deductible, then:- Office costs= $125 Jane pays= $125 Her plans pays= $0…

Q: What can be done to ensure that Medicare does NOT run out of money or that the plan stays…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you. If…

Q: why is adverse selection important in healthcare insurance markets.

A: When talking about healthcare insurance market, it can be said that it is the market for the people…

Q: Explain the history of failed attempts to enact national health insurance in the United States.

A: National health insurance, also known as statutory health insurance, is a type of health insurance…

Q: What is the significance when it comes to adverse selection to show it's efficient function of a…

A: Adverse selection is a phenomenon in which the presence of asymmetric information between two…

Q: The primary purpose of he Coordinalion of Benefits provision found in most group Major Medical…

A: Coordination of benefits is an arrangement in the insurance agreement that applies when an…

Q: Which of the following reports has the primary purpose lo inform an insurance company about a…

A: Medical insurance is a form of insurance that covers all or part of a person's risk of incurring…

Q: $ Marginal Cost Marginal Benefit Q₂ Q₁ Quantity Refer to the diagram. Economists would argue that…

A: Demand curve(marginal Benefit curve) is downward sloping curve.  Supply curve (Marginal cost curve)…

Q: How will an aging population influence health policy makers in the 21st- century?

A: Health policy refers to the decision of government authority in order to achieve the desired…

Q: A noted insurance authority has said, “Because the financing of long-term care is inconsistent with…

A: PLEASE FIND THE ANSWER BELOW.   LONG TERM FINANCE: Long-term finance can be defined as any financial…

Q: Give examples of horizontal and vertical integrations in health care systems?

A: Patients, insurance companies, governments, corporations, health care providers, researchers, and…

Q: What approaches to healthcare reform are morally acceptable, economically effective, and politically…

A: Providing a combination of private and government insurance is policy to fix the consumer failure of…

Q: What is the economic rationale for single payer health insurance? Discuss the economic principles…

A: Health economics is used to promote healthy lifestyles and positive health outcomes through the…

Q: Which of he following characleristics is typical of group insurance?   A.Medical examinations are…

A:

Q: Does perfect competition provide an advantage or disadvantage to the consumer and to the health care…

A: Perfect Competition Perfect competition refers to the structure of market where there are many…

Moral Hazard

The moral is a person's behavior towards himself /herself, society, organization, and others. Hazard is something that is happening and is not good. A person may be morally good or bad. It depends on his attitude, ethics, integrity, and values. A person may have the highest reverence for money to that for the truth. In this case, the person may lie and it is said that the person is morally bad.