1. 5 policy options

Completely private insurance markets

Universal public insurance

Compulsory insurance

Employer-sponsored insurance

Means-tested health insurance

Define adverse selection in the context of the health insurance market and explain how each of these options addresses the problem of adverse selection.

2.Categorize the five options in terms of the option that produces the most amount of adverse selection, the option that produces the least amount of adverse selection, and the options that are in the middle. Explain your answers.

3.4 policy options

Cost Benefit/cost effectiveness analyses

Cost sharing

Gatekeeping and queuing

Prospective payment

Explain how each of these options addresses the problem of moral hazard, but also list one downside to each of these policy options.