Why may cost differences across plans be partly due to enrollee selection? Low-risk users are less likely to require medical services All plans inherently cost the same to administer Plans can segment their market to attract low-risk users and avoid high-risk users High-risk users tend to choose plans with higher premiums for more comprehensive coverage

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter7: The Market For Health Insurance
Section: Chapter Questions
Problem 2QAP
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Why may cost differences across plans be partly due to enrollee selection?
Low-risk users are less likely to require medical services
All plans inherently cost the same to administer
Plans can segment their market to attract low-risk users and avoid high-risk
users
High-risk users tend to choose plans with higher premiums for more
comprehensive coverage
Transcribed Image Text:Why may cost differences across plans be partly due to enrollee selection? Low-risk users are less likely to require medical services All plans inherently cost the same to administer Plans can segment their market to attract low-risk users and avoid high-risk users High-risk users tend to choose plans with higher premiums for more comprehensive coverage
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