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October 8, 2022

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

Healthcare Economics

Respond to one question by this Saturday midnight and then respond to TWO of your classmates’ responses (in an area different than your initial response) by Tuesday midnight. Please try not to replicate other’s responses and include the topic you are responding to at the beginning of your post.

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

Based on this week’s readings “Consumer Demand for Health Insurance,” what happens if the price of health insurance is too high and how sensitive are consumers to the price of health insurance?

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?

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.

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