This topic contains a solution. Click here to go to the answer

Author Question: Explain the adverse selection problem that is faced by health insurance companies when offering ... (Read 130 times)

crobinson2013

  • Hero Member
  • *****
  • Posts: 535
Explain the adverse selection problem that is faced by health insurance companies when offering individual health insurance policies. What method do health insurance companies employ to combat the problem?
 
  What will be an ideal response?

Question 2

Stock prices start to rise
 
  A) when investors begin to expect an economic recovery will soon begin.
  B) when the unemployment rate begins to decline following a recession.
  C) when investors are confident that the economy is more than 6 months into an economic recovery.
  D) when investors believe an economic recovery has already begun.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

1_Step_At_ATime

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

The adverse selection problem that health insurance companies face is that they would like to insure as many healthy people as possible. Unfortunately healthy people will have a lower tendency to purchase health insurance. By contrast people who assess that they are more likely to use the health insurance because of their perceived or known health problems will be more inclined to seek out insurance. Health insurance companies can combat this problem by requiring potential policy holders to take a physical exam which may reveal pre-existing conditions which they may either choose not to cover or do so with a higher premium.

Answer to Question 2

A




crobinson2013

  • Member
  • Posts: 535
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


nothere

  • Member
  • Posts: 324
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

For a complete list of videos, visit our video library