A company with 1,000 employees has the following experience this year
25 hospitalizations at each.
24 births at each.
4.1 physician visits per employee at per visit.
2.4 prescriptions filled per employee at per prescription.
The actuarially fair premium for this company
A) is less than $500 per employee.
B) is greater than $1000 per employee.
C) is approximately $686 per employee.
D) is less than the loading factor per employee.
E) is the same as the loading factor per employee.
Correct Answer:
Verified
Q10: Catastrophic medical expenses are large, infrequent and
Q11: The primary funding source for the expenses
Q12: Medical bills may be paid by any
Q13: Social insurance
A) is not found in the
Q14: A sudden escalation in the utilization rates
Q16: The U.S. government subsidizes the private provision
Q17: Many employers in the U.S. pay significant
Q18: Insurance coverage of which treatment would likely
Q19: Offering insurance coverage through an optional rider
Q20: Sahar does not have medical insurance
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