Explain why the use of community-rated premiums leads to economic inefficiencies.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q8: Are high concentration ratios indicative of market
Q9: Assume a high-risk;person has a 0.50 probability
Q10: A movement of the medical loss ratio
Q11: Blue Cross and Blue Shield uses
A)Experience rating
Q12: The Health Insurance Portability and Accountability Act
Q14: Premiums based on experience ratings
A)Are uniform across
Q15: If the health insurance premium is equal
Q16: Assume the health insurance market is perfectly
Q17: Firms self-insure to
A)Save money on premiums.
B)Avoid state
Q18: A strong individual mandate with large fines
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents