need help with health economics problem

2. There are four equally-sized groups in the population with expected health costs and willingness to pay for health insurance given in the table below. Insurance companies are unable to distinguish between the groups. Ex n ected health care costs $200 $1000 $2800 Maximum willingness to pay for $250 health insurance. $4000 a. Why would the groups be willing to pay more for health insurance than they expect to pay in health care costs? (5 points) Suppose that Congress passes a health insurance mandate. What would the actuarially fair premium be if everyone bought insurance? (5 points) Suppose that GOP lawmakers repeal the mandate in (b). If insurance company just wants to break even, what premium would arise in the market? Which groups would buy insurance at this price? (10 points) Suppose insurance companies are able to distinguish between the groups and use experience rating to sell insurance. Which groups would be insured and at what price? (5 points)