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July 18, 2025

Week 1 Discussion 2: Health Insurance Deductibles

After completing the Waxman reading, answer the questions that follow.
A growing share of health insurance plans have high deductibles, so that an individual must spend up to $6,450 before insurance begins to pay for services. What problem(s) are these insurance plans trying to solve?
Answer this question using economic terminology related to health insurance. For what reasons might these plans be successful? In what ways might these plans backfire?

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