Question:When compared to insurance from an employer, the direct purchase of insurance is often: Options: Very cheap, because insurance from an employer helps control for adverse selection. Very expensive, because insurance from an employer helps control for adverse selection. Very cheap, because the direct purchase of insurance helps control for adverse selection. Very expensive, because the direct purchase of insurance helps control for adverse selection.

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter7: The Market For Health Insurance
Section: Chapter Questions
Problem 7QAP
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Question:
When compared to insurance from an employer, the direct purchase of insurance is often:

Options:

  • Very cheap, because insurance from an employer helps control for adverse selection.
  • Very expensive, because insurance from an employer helps control for adverse selection.
  • Very cheap, because the direct purchase of insurance helps control for adverse selection.
  • Very expensive, because the direct purchase of insurance helps control for adverse selection.
  •  
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