Federal law allows workers who leave a job to continue to participate in the health insurance they were receiving through their previous employer. However, they have to pay the full monthly premium (including both the employee and employer portions), as well as a 2 percent administrative fee. This high price has led many people, especially the healthier ones, to drop coverage. Insurance companies report that these plans lose them money. Use the concepts developed in this chapter to explain this situation.
Answer to relevant QuestionsAfter removing all its traffic lights, the Dutch town of Drachten saw a decline in traffic fatalities. With the traffic lights, there was one road death every three years, but since their removal seven years ago there have ...Suppose that your city government is interested in reducing littering. Currently, there is a $ 100 fine for littering and there is a 10 percent probability of being caught if you litter. The city is deciding between two ...The three panels in Figure 10.5 show instances in which health insurance either increases or stays the same with the introduction of government-provided insurance. Diagram a set of indifference curves that illustrates a ...Consider a model in which an individual lives only two periods. The individual has diminishing marginal utility of consumption and receives an income of $ 20,000 in period 1 and an income of $ 5,000 in period 2. The private ...Would a government program that transferred income from the middle class to both the poor and the rich be supported by someone with the maximin social welfare function?
Post your question