Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre-existing conditions as Indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of insured 15 5 Anticipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2.600 $2,700 $2,800 $2,900 $3,000 HE $3100 unui $3,200 $3,300 $4,000 $7,000 $10,000 Determine what would happen in the second year if there were a penalty of $500 for not having insurance. How many people would buy insurance in the second year? I Assumo a pool of 115 people in an insurance pool (a group of people Insured through community rating)It is estimated that a small number in the pool will have significant pre-existing conditions as indicated in the table. Based on the age of those 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured 5 "Anticipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 $2,400 $2,500 $2,600 $2,700 $2,800 $2,900 $3,000 $3,100 $3,200 $3,300 $4,000 $7.000 $10,000 5 5 5 Everyone joins the pool and pays the necessary premium in the first year. The claims experience of the customers is found to be generally consistent with expectations of the insurance company By those customers who have anticipated claims less than 75 percent of the premium now decide that It is not rational to buy insurance, how many will decide to be insured? Assume a pool of 115 people in an insurance pool (a group of people insured through community rating). It is estimated that a small number in the pool will have significant pre-existing conditions as Indicated in the table. Based on the age of these 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of insured 15 5 Anticipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2.300 $2,400 $2,500 $2.600 $2,700 $2,800 $2,900 $3,000 HE $3100 unui $3,200 $3,300 $4,000 $7,000 $10,000 Determine what would happen in the second year if there were a penalty of $500 for not having insurance. How many people would buy insurance in the second year? I Assumo a pool of 115 people in an insurance pool (a group of people Insured through community rating)It is estimated that a small number in the pool will have significant pre-existing conditions as indicated in the table. Based on the age of those 115 people, the insurance company estimates the following distribution of health care claims (which includes necessary profit and administrative costs of the insurance company). Number of Insured 5 "Anticipated Heath Costs/Year/Person $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 $2,400 $2,500 $2,600 $2,700 $2,800 $2,900 $3,000 $3,100 $3,200 $3,300 $4,000 $7.000 $10,000 5 5 5 Everyone joins the pool and pays the necessary premium in the first year. The claims experience of the customers is found to be generally consistent with expectations of the insurance company By those customers who have anticipated claims less than 75 percent of the premium now decide that It is not rational to buy insurance, how many will decide to be insured