B, MindTap-ECON 201.02-FA x e Home | Chegg.com MindTap-Cengage Learnin xG unders
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B, MindTap-ECON 201.02-FA x e Home | Chegg.com MindTap-Cengage Learnin xG understanding the market x ·t How to take a screenshot on × Tyler James d ng.cengage.com/static/nb/ui/index.html?nbld-621416&nbNodeld;=228318720&deploymentId;=5672211883504599186677317526&eISBN-97813370; 5% MIN DTAP News Analysis The Health Insurance Death Spiral @ Tyler Lee- Due Today at 11 PM EST Back to Assignment Score: /1 Attempts 1. Background information on the economics of health care Read the following passage, which introduces some of the economic concepts nvolved in the market for health insurance. Then answer the questions that follow. Understanding the Market for Health Insurance by the Aplia Economics Content Team Health insurance an important political and economic issue that got extra attention in 2010 with the passage of the Patient Protection and Affordable Care Act (PPACA). Two mportant provisions of the PPACA are: 1. Insurance companies must offer the same Source: 5x0 pvemvum (the monthly payment for insurance) to all applicants of the same age, sex, and geographical location, regardless of pre-existing conditions 2. Individua's who do not buy health insurance will be charged a fine. This second provision has been challenged as an unconstitutional government mandate Nthough cconomics cannot help assess the constitutionalty, it can help explain why guarantecing equal insurance apportunity for all is difficult when individuas can choose not to buy health insurance. A-Z Based on what you read, which of the following is necessary for a system of health irsurance to function? O People must be able to perfectly foresee their health care costs. O All insured people must be relatively healthy The pool of people paying into insurance must be large.Explanation / Answer
Answer c) The pool pf people paying into insurance schemes must be large.
The passage talks about the policy of charging same premium from everyone and levy of fine on those who do not buy insurance policies. The reason why the second policy is important because in order to maintain a reasonable health insurance premium it is essential that large pool of people invest in it because if most of the people who invest will be suffering from some health condition the chances of them falling sick will be very high and it will be adverse selection.
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