True or False Small group coverage mitigates the problem of adverse selection fo

Question

True or False

Small group coverage mitigates the problem of adverse selection for the nine percent of the population who purchase health insurance individually.

High deductible plans increase consumer awareness of costs of medical care by forcing them to pay for expenses up to a deductible amount. The negative aspect of this is that employees may not like having to spend extra time gathering information about price differences between providers.  

An important feature of health insurance companies’ pricing policies is that in the long run, cyclical trends of overcharging and undercharging can be observed, with each cycle period lasting 1-3 years.

A large, economically efficient medical practice will most likely employ non-physician inputs such as lab technicians, sophisticated computer systems, physician assistants, and nurses, in greater numbers than will a smaller medical practice.

Income potential will be higher in those physician specialties where insurance covers most of the charges, with little out-of-pocket cost to the consumer (e.g. surgeries); while income potential will be lower in those physician specialties where patients commonly face copayments and deductibles.

Amount of required training is the primary determinant of the income potential in any given physician specialty.

Explanation / Answer

Small group coverage mitigates the problem of adverse selection for the nine percent of the population who purchase health insurance individually- True, it mitigates the problem of Adverse Selection

2. High deductible plans increase consumer awareness of costs of medical care by forcing them to pay for expenses up to a deductible amount. The negative aspect of this is that employees may not like having to spend extra time gathering information about price differences between providers. - False because  High-Deductible Health Plans Cut spending

3. An important feature of health insurance companies’ pricing policies is that in the long run, cyclical trends of overcharging and undercharging can be observed, with each cycle period lasting 1-3 years

True, it is totally correct

4. A large, economically efficient medical practice will most likely employ non-physician inputs such as lab technicians, sophisticated computer systems, physician assistants, and nurses, in greater numbers than will a smaller medical practice- False

There should be greater medical practice employed for greater medical practice

5. Income potential will be higher in those physician specialties where insurance covers most of the charges, with little out-of-pocket cost to the consumer (e.g. surgeries); while income potential will be lower in those physician specialties where patients commonly face copayments and deductibles

True because everyone wants to pay less, less payments will lead to more insurance cover

6. Amount of required training is the primary determinant of the income potential in any given physician specialty. - True, it leads to perfectness of the person

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