University of Maryland Global CampusDepartment
Respond to the question assigned to you. Include the question at the beginning of your post. Then respond to the initial post of two other students. Ask probing questions. Always include citations and references in correct APA format. Ensure you reply to any follow-up questions by the professor.
1. What is the definition of moral hazard? How do insurance companies reduce its influence?
2. Discuss the impact of co-pays and deductibles on demand for health care services for insured individuals.
3. Based on this week’s readings “Consumer Demand for Health Insurance,” what happens if price of health insurance is too high and how sensitive are consumers to the price of health insurance?
4. What is adverse selection? How do insurance companies minimize its impact on premiums?
5. What is expected value? Using expected value to set premiums, what premium would someone who is risk adverse be willing to pay?
6. Identify at least three factors which impact the demand for health insurance?
7. What premium would a risk neutral person be willing to pay?
8. Why is health insurance linked to employment (e.g. group insurance) in the United States? Explain.
Martin, Beverly 8; Why is health insurance linked to employment (e.g. group insurance) in the United States? Explain.