raising the deductibles and co payments is a way of dealing with the 1. adverse selection...

raising the deductibles and co payments is a way of dealing with the

1. adverse selection problem of health insurance

2. moral hazard problem of health insurance

3. asymmetric information between doctors and patients.

4. externalities of health care.

Expert Solution

Answer : Rasing deductibles and copayment is a way of dealing with the adverse selection problem of health insurance. It means that raising the deductible amount of money that policy holders must to pay out of pocket towards damages. It means selection of the health insurance has been increased.

Rahul Sunny answered 2 years ago

1.Co-payments, as opposed to deductibles, and coverage only or primarily from a restricted network of health...

1.Co-payments, as opposed to deductibles, and coverage only or primarily from a restricted network of health care providers is commonly associated with a. Social Security. b. managed care health care plans. c. indemnity health care plans. d. workman's compensation insurance e. Medicaid 2. Auto and homeowner's insurance generally provide complete payments for the losses they decide, after the _________ is met by the policyholder. a. co-payment b. co-insurance c. mutual fund payment d. entry fee e. deductible 3. The Principle...

What is adverse selection, Describe some examples of markets with adverse selection.

an indication that insurance companies anticipate adverse selection is (a) they do not require a co-pay...

an indication that insurance companies anticipate adverse selection is (a) they do not require a co-pay (b) they classify clients into different risk types according to pre-existing conditions (c) they do not require a deductible (d) the do not classify clients into different risk types according to thier claim history.

What is the adverse selection problem? How does adverse selection affect the profitable management of an...

What is the adverse selection problem? How does adverse selection affect the profitable management of an insurance company?

Information Asymmetry. a. Adverse Selection: In the market for used airplanes, explain how adverse selection might...

Information Asymmetry. a. Adverse Selection: In the market for used airplanes, explain how adverse selection might arise. What might the buyer or seller do to eliminate adverse selection? b. Moral Hazard and the Principal-Agent problem. Suppose you own a real estate office that represents buyers and sellers of residential homes. You hire someone to manage the office for you. What moral hazard issues might you encounter? How does this illustrate the Principle-agent problem, and what could you do to partially...

What is Adverse Selection in Insurance? Suggest two general ways of ameliorating Adverse Selection in Insurance.

What are adverse selection and moral hazard?

Adverse selection can lead to collapse of health insurance market through adverse selection death spiral. Although...

Adverse selection can lead to collapse of health insurance market through adverse selection death spiral. Although adverse selection can be observed in any insurance market, we do not observe adverse selection in many cases. Name reasons why adverse selection may not occur in real markets. Explain each reason

1. In each of the following cases, identify whether the problem is adverse selection or moral...

1. In each of the following cases, identify whether the problem is adverse selection or moral hazard, and explain your answer. How might the problem be dealt with? The IMF has given a large payment to the nation of North Dystopia to help them cope with a financial crisis. With the money in hand, the government prefers spending the money on erecting statues in honor of their esteemed leader rather than on economic policies to improve their financial system. The...

⦁ Discuss two methods for reducing the impact of adverse selection.

Question