One way insurance companies reduce adverse selection problems is by offering group medical coverage to large firms

Question:

One way insurance companies reduce adverse selection problems is by offering group medical coverage to large firms and requiring all employees to participate in the coverage. Explain how this reduces adverse selection.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Mylab Economics With Pearson Access Code For Principles Of Microeconomics

ISBN: 9780135197141,9780135197103

13th Edition

Authors: Karl E. Case; Ray C. Fair; Sharon E. Oster

See More Books

Question Posted: Feb 21, 2024 02:00 AM

See More Questions

KEEP EMPLOYEES HEALTHY Controlling Health Status and Healthcare Cost of Employees Force 6: Employee Health. With the dramatically increasing cost of healthcare and the fact that in the United States,...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
What levels of visibility may be assigned to an attribute or an operation?
In Exercises 1-4, match the trigonometric expression with its simplified form. (a) csc x (b) -1 (c) 1 (d) sin x tan x (e) sec2 x (f) sec x 1. sec x cos x 2. cot2 x csc2 x 3. cos x(1 + tan2 x) 4. cot...
When the risk-free return is 3.5%, what is the cost of equity capital for a company whose stock has a historical beta factor of 0.92 and the security market indicates that the premium above the...
3. If enterprise fund assets are financed through general obligation bonds, rather than revenue bonds, the debt: a Is not an enterprise fund liability b Must be serviced through a debt service fund c...
The following are various cash flows and other information for Leer Company for 2016: a. Payments of interest, $5,000 b. Depreciation expense, $22,700 c. Receipt from sale of land, $3,100 d. Payments...
You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retters and consumers. The rotor sets retail proof 54000 per unit and, at that prion,...
Included in the Tax Cuts and Jobs Act of 2017 was the elimination of the individual mandate penalty for not having health insurance. Starting in 2019, individuals who do not have health insurance...
Valentino wants to purchase a classic motorcycle and sees a 1974 Triumph Bonneville T140 listed on Cycletrader.com for $5,950. He is willing to pay $7,500 if the motorcycle is reliable, but only...
Why do firms issue stock dividends? Comment on the following statement: I have a stock that promises to pay a 20 percent stock dividend every year, and therefore it guarantees that I will break even...
The pipe assembly is mounted vertically as shown in (Figure 1). Part A Figure 200 mm 80 mm- 1.2 m Determine the pressure at A if the velocity of the water ejected from B is 0.77 m/s. Express your...
Suppose you were asked to estimate the probability that your coin came up "Heads" from your observations. Provide such an estimate including a 90% confidence interval. Explain your calculations.
Given the following C++ code snippet, what is the value of num3? Your answer must be exact. int num1, num2, num3; int *p_num1 - &num1; int *p_num2 &num2; *p_num1 15; *p_num2 10; * num3 = *p_num1...
# 1. On April 1, C.S. Lewis Company borrows (Notes payable) $70,000 from Lyon National Bank by signing a 3 month 8% note. Prepare the journal entries to record: a) the issuance of the note b) the...
Find and correct the program below, check your answer by running the script 1. 2. #include int main() 3. { 4. float Number1; 5. double Number2; 6. 7. 8. printf("Enter a number: "); scanf("%f",&num1)...
Malonic acid is used in the manufacture of barbiturates (sleeping pills). The composition of the acid is 34.6% C, 3.9% H, and 61.5% O. What is malonic acids empirical formula?
Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...
Explain why a firm may want to pursue a market penetration opportunity before pu r suing one involving product development or diversification.
In your own words, explain several reasons why a marketing manager should co n sider international markets when evaluating possible opportunities.
Give an example of a foreign-made product (other than an automobile) that you pe r sonally have purchased. Give some reasons why you purchased that product. Do you think that there was a good...
Saly paid $52,000 a year paid on a weekly basis. last pay she had $250 withheld in Income Tax, $48.97 for CPP and $15.80 for EI. an additional $and 25.00 in tax are deducted each pay. She allowed to...
Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits...
Which of the following partnership items are not included in the self-employment income calculation? Ordinary income. Section 179 expense. Guaranteed payments. Gain on the sale of partnership...

One way insurance companies reduce adverse selection problems is by offering group medical coverage to large firms

Question:

Step by Step Answer:

Group medical coverage for large firms helps reduce adverse selection by creating a larger and more diverse risk pool Adverse selection occurs when in...View the full answer

Mylab Economics With Pearson Access Code For Principles Of Microeconomics

Students also viewed these Business questions