Question

In: Economics

The goal of health insurance is to: 1. redistribute income from the sick to the healthy...

The goal of health insurance is to:

1.

redistribute income from the sick to the healthy
2.

spread risk over a large group of people
3.

equally distribute the probability of loss over a large number of people
4.

collect sufficient premiums to cover all possible losses
5.

equalize the availability of medical care across population groups

Solutions

Expert Solution

  • Option 2 is the answer.
  • Spread risk over a large group of people.
  • The goal of health insurance is to spread risk over a large group of people. Health insurance provides coverage for any loss due to health issues. As a part of health insurance programs, a certain amount of money is received as premiums from the customers. Here, there may or may not be enough money obtained via these premiums, but the money needed for the treatment will be provided through health insurances. So, for health insurances it can be said that the risk is spread over large group of people.

Rahul Sunny answered 3 years ago
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