4. Problems and Applications Q4 The health insurance reform signed into law by P

Question

4. Problems and Applications Q4 The health insurance reform signed into law by President obama in 2010 included the following two provisions: A. Insurance companies must offer health insurance to everyone who applies and charge them the same price regardless of a person's preexisting health condition B. Everyone must buy health insurance or pay a penalty for not doing so. People with preexisting health conditions are likely to incur medical costs. If insurance companies were allowed to charge applicants d preexisting health conditions more prices, they will likely charge less insurance premiums to people without True or False: If insurance companies have to charge all applicants the same price, health insurance premiums would likely fall. O True False

Explanation / Answer

Here the govt has regulated that price of insurance will be same for every individual. In the absence of this insurance companies are likely to charge people with prior health conditions more premium as they are more likely to take claims but now as they have to charge equal these people will incur less costs.

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