Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
8th Edition
ISBN: 9781337292603
Author: Mankiw
Publisher: Cengage Learning (2018)
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Chapter 22, Problem 4PA
Subpart (a):
To determine
Identifying the problem ofadverse selection.
Subpart (b):
To determine
Identifying the problem ofadverse selection.
Subpart (c):
To determine
Identifying the problem ofadverse selection.
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The government wants to regulate health insurance companies requiring them to provide insurance coverage not just for future health problems, but also for pre-existing conditions. For such a policy to succeed, it is important to make purchase of health insurance compulsory for individuals. Is this true or false? Explain your answer.
The government wants to regulate health insurance companies requiring them to provide insurance coverage not just for future health problems, but also for pre-
existing conditions. For such a policy to succeed, it is important to make purchase of health insurance compulsory for individuals. Is this true or false? Explain your
answer.
Economics
Use the following information to determine the
costs to you and/or to the insurance company for
the following occurrences:1) You have $500 per
person Wellness Benefit.2) You have a $500
İndividual Deductible and your family (spouse and
children) has a $500 Family Deductible.3) You have
a $10,000 annual Maximum Family Out-of- Pocket
expense provision.4) Once you have met your
Individual or Family Deductible, your insurance will
pay 80% of the expenses and you will pay 20% as
your co-pay.Unless the occurrence is a Wellness
expense, you and/or your family have to meet
their deductibles first before insurance will pay
anything. Example:Assume that you have met your
deductible, and you go to the Emergency Room
for a large cut on your shin which required
cleaning, 20 stitches, a tetanus shot, and
antibiotics. (80/20 plan)Total Charges = $2,500
totalYour Responsibility = $2,500*.20 = $500 (goes
toward your Max Out of Pocket)Insurance
Responsibility = $2,500*.80 = $2,000
Question:…
Chapter 22 Solutions
Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
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