Suppose that within a glven city, men batween the ages of 30 and 41 fall into one of four health categories: very healthy, healthy, unhealthy, and very unhealthy. A5 a part of the Patient Protection and Affordable Care Act (PPACA), the government mandates that insurance companies must charge the same premium to all people within a glven gender, age, and geographic region. The insurance company must determine the premium it should charge to all people in this category so that it can cover the total cost of care. In order to complete your analysis, make the following assumptions: 1. The insurance company does not incur any costs to run or administer the policies, and it does not make any profit. 2. The population is large enough so that expected values hold at the aggregate lovel. 3. Anyone who pays the monthly premium receives complete coverage of all medical expenses (in other words, everyone is offered full insurance). 4. All citizens are risk averse and therefore are willing to pay a premium above the expected value of their costs, up to the amount Indicated in the column "Maximum Willingness to Pay for insurance" in the following table. The following table presents the number of very healthy, healthy, unhealthy, and very unhealthy people, as well as the expected monthly cost of providing care for esch category. The table also presents the maximum that an individual is willing to pay within each group, which is higher than the expected cost. This reflects the fact that people are generally risk averse. In the context of bealth insurance, this means that people prafer to pay some ameunt for certain each month than to face paying the full costs of somewhat unpredictable care. and the total expected monthly cost of insuring all citizens. If the insurance company must offer one plan to all men between the ages of 30 and 41 , the monthly premium (rounded to the nearest dollar) must be per person in order for the total amount the insurance company collects to be equal to the total amount it expects to pay out. Suppose the government repeais the mandate, and now it allows people to decide whether they want to buy into the policy. Once consumers are given a choice of whether to buy into the premium, the insurance company will collect a total of premiums, and it will pay out an expected total of to cover the expenses of all those who buy the policy. Based on the groups that still want to buy insurance at the original premium, the insurance company would need to collect person to cover the expected total cost per person. If the insurance company raises the premium to this price, which of the following oroups would still be willing to buy health insurance? Check all that apply, Very Unhealthy Very Healthy Healthy Unhealthy Without a government mandate to purchase insurance, as premiums rise, the healthy people are likely to stop purchasing insurance. This causes the insurance company to face expected costs per person, thus forcing it to premiums in order to break even. The cycle continues until only the healthy remain to purchase insurance, This phenomenon is knawn as a death spiral