Week 3 Discussion: Economics and Healthcare Insurance

· Initial Posting: Due Saturday of Week 3 by 11:59 pm EST.

· Minimum of Two Peer Replies: Due Tuesday of Week 3 by 11:59 pm EST. 

Provide a response to  TWO of the questions below by Saturday, then provide a response to at least TWO of your peers by Tuesday: 

· Include the two questions that you selected to discuss at the top of your initial posting.

· What is the definition of moral hazard? How do insurance companies reduce its influence?

· Discuss the impact of copays and deductibles on demand for health care services for insured individuals

· What is adverse selection? How do insurance companies minimize its impact on premiums?

· What is expected value? Using expected value to set premiums, what premium would someone who is risk adverse be willing to pay?

· Identify at least three factors that impact the demand for health insurance? Provide an example of each factor.

· What premium would a risk neutral person be willing to pay?

· Why is health insurance linked to employment (e.g. group insurance) in the United States? Explain.

APA Requirements -Include Scholarly Evidence: Include at least TWO APA formatted references with correlating in-text citations.