3. Suppose you are in charge of allocating health insurance for different types of diseases. What are the criteria you should use to decide which diseases should be insured and which should not be insured? For example, would you be more likely to insure brain surgery or therapist visits? 4. Phelps points out that BLUE plans offer insurance policies that are very different from the "optimal" type of policy demanded from a rational utility maximizing consumer. Describe this difference. 5. Why does an HMO do a better job of controlling health care expenditures than a standard FFS style insurance plan