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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.