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7. Case Study: Health Insurance Death Spiral. Review the articles in Question 8 above and use the data in the table when indicated. The table considers four potential health insurance populations in the US. These groups have the following population sizes, expected average annual healthcare costs per person and the maximum amount they are willing to pay for health insurance. PMAX Level of Health Population Average healthcare cost per person Very Healthy 800,000 $2,000 Moderately Healthy 600,000 $5,000 Moderately 400,000 $10,000 Unhealthy Very Unhealthy 200,000 $25,000 $2,500 $6,000 $13,000 $35,000 Level of Health PMAX Populatio n Average Round 1 Total cost of loss per Round 2 Round 3 Total cost of Total cost of each group each group each group 800,000 person $2,000 600,000 $5,000 $2,500 $1,600,000,00 0 $6,000 $3,000,000,00 0 $13,00 $4,000,000,00 0 0 400,000 $10,000 $4,000,000,0 00 Very Healthy Moderatel y Healthy Moderatel Unhealthy Very Unhealthy Total Populatio n 200,000 $25,000 $35,00 $5,000,000,00 0 0 $5,000,000,0 00 $5,000,000,0 00 2,000,000 Expected Expected Expected Loss per capita=$6,800 capita=? Loss per Loss per capita=? 7. Case Study: Health Insurance Death Spiral. Review the articles in Question 8 above and use the data in the table when indicated. The table considers four potential health insurance populations in the US. These groups have the following population sizes, expected average annual healthcare costs per person and the maximum amount they are willing to pay for health insurance. PMAX Level of Health Population Average healthcare cost per person Very Healthy 800,000 $2,000 Moderately Healthy 600,000 $5,000 Moderately 400,000 $10,000 Unhealthy Very Unhealthy 200,000 $25,000 $2,500 $6,000 $13,000 $35,000 Level of Health PMAX Populatio n Average Round 1 Total cost of loss per Round 2 Round 3 Total cost of Total cost of each group each group each group 800,000 person $2,000 600,000 $5,000 $2,500 $1,600,000,00 0 $6,000 $3,000,000,00 0 $13,00 $4,000,000,00 0 0 400,000 $10,000 $4,000,000,0 00 Very Healthy Moderatel y Healthy Moderatel Unhealthy Very Unhealthy Total Populatio n 200,000 $25,000 $35,00 $5,000,000,00 0 0 $5,000,000,0 00 $5,000,000,0 00 2,000,000 Expected Expected Expected Loss per capita=$6,800 capita=? Loss per Loss per capita=