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Insurance Model How is this type of insurance ordinarily financed? Is adverse se

ID: 1713050 • Letter: I

Question

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Private Insurance Market (individual rating)

Employer-Sponsored Health Insurance

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Means – Tested Health Insurance

Compulsory Private Insurance

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Universal Public Insurance

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Private Insurance Market (individual rating)

Employer-Sponsored Health Insurance

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Means – Tested Health Insurance

Compulsory Private Insurance

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Universal Public Insurance

Explanation / Answer

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Private Insurance Market (individual rating)

This type of Insurance is financed through public funds which is a total health care financing

Insurance business is a failure in this case as in adverse condition buyers have better information then sellers and this can distort usual market process and the business will not be profitable for the company.

Proper use of deductibles should be done

Use of credit and insurance score should be done

Penalize bad behaviour and

keeping Good claim metrics

Financial requirements imposed on large and medium sized employers in cases where employeers full time workers obtain subsidized coverage througha health insurance exchange due to the employeer not offering coverage or deemed not offering coverage to that particular employee.

Employer-Sponsored Health Insurance

this type of Insurance employer involves a fourth party and doesnot pay directly to third party so the risk is transfered to the fourth party

Employeers wont be effected in adverse condition as the risk is allocated to the fourth party

Risk is transfered to the fourth party employeer remains safe

Expenses for bearing expenses are managed by employer and is given for free to company employees.

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Means – Tested Health Insurance

these are sponsored by government

yes there are chances of selecting many people who are unhealthy &people who smoke hence this insurance needs to be paid to consumers and company may sustain loss

by doing complete health checkup while insuring a person

this insurance is sponsored by goverment so it is made from point of view of making it more affordable for common people

Compulsory Private Insurance

this insurance is financed by Statatuory health Insurance

this is insurance is for probable accidents, yes people are associated with risk but insurance will not come to loss

by bring up statuatory requirements of safety to the employeer

It is a compulsary insurance for the associated employees

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Universal Public Insurance

This is financed by the world health organization

Adverse conditions may occur when there are natural calamities

Goverment should impose optimum deductibles.

Ensure copayment mechanisms to struggle over critical issues

this insurance is to be made at the least payable cost and has to be approved by WHO

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Private Insurance Market (individual rating)

This type of Insurance is financed through public funds which is a total health care financing

Insurance business is a failure in this case as in adverse condition buyers have better information then sellers and this can distort usual market process and the business will not be profitable for the company.

Proper use of deductibles should be done

Use of credit and insurance score should be done

Penalize bad behaviour and

keeping Good claim metrics

Financial requirements imposed on large and medium sized employers in cases where employeers full time workers obtain subsidized coverage througha health insurance exchange due to the employeer not offering coverage or deemed not offering coverage to that particular employee.

Employer-Sponsored Health Insurance

this type of Insurance employer involves a fourth party and doesnot pay directly to third party so the risk is transfered to the fourth party

Employeers wont be effected in adverse condition as the risk is allocated to the fourth party

Risk is transfered to the fourth party employeer remains safe

Expenses for bearing expenses are managed by employer and is given for free to company employees.

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Means – Tested Health Insurance

these are sponsored by government

yes there are chances of selecting many people who are unhealthy &people who smoke hence this insurance needs to be paid to consumers and company may sustain loss

by doing complete health checkup while insuring a person

this insurance is sponsored by goverment so it is made from point of view of making it more affordable for common people

Compulsory Private Insurance

this insurance is financed by Statatuory health Insurance

this is insurance is for probable accidents, yes people are associated with risk but insurance will not come to loss

by bring up statuatory requirements of safety to the employeer

It is a compulsary insurance for the associated employees

Insurance Model

How is this type of insurance ordinarily financed?

Is adverse selection a problem with this type of insurance? Why or why not?

With this type of insurance, what can be done to control moral hazard problems?

How could this system be made affordable to low-income families?

Universal Public Insurance

This is financed by the world health organization

Adverse conditions may occur when there are natural calamities

Goverment should impose optimum deductibles.

Ensure copayment mechanisms to struggle over critical issues

this insurance is to be made at the least payable cost and has to be approved by WHO

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