Question: How do higher deductibles act to reduce moral hazard problems, especially for small medical expenses?

How do higher deductibles act to reduce moral hazard problems, especially for small medical expenses?

Step by Step Solution

★★★★★

3.54 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The helth re exenditure in US is ne f the lrgest sending rtins f US... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

230-B-E-M (1939).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

What bank regulations are designed to reduce moral hazard problems created by deposit insurance? Will they completely eliminate the moral hazard problem?

Q:

How is the moral hazard problem relevant to the health care market?

Q:

How does the moral hazard problem differ from the adverse selection problem in markets for medical insurance?

Q:

Summarize the attached CUMMhNTARY Is 'Moral Hazard' Inefficient? The Policy Implications Of A New Theory A large portion of \"moral hazard\" health spending actually represents a welfare gain, not a...

Q:

11. A reinsurance contract that is entered into on a case-by-case basis after an application for insurance is received by a primary insurer is called A) a reinsurance pool. B) automatic treaty...

Q:

Anna has a fire in her home and some of her furniture is destroyed. Under her insurance policy, her furniture is valued on an actual cash value basis. How much will Anna receive for her furniture...

Q:

QUESTION 1 Suppose that the pretax price of gasoline is $1 per gallon. A tax of $0.50 is imposed and is paid by producers to the government. What must the gross price (price plus tax) of gasoline be...

Q:

KEEP EMPLOYEES HEALTHY Controlling Health Status and Healthcare Cost of Employees Force 6: Employee Health. With the dramatically increasing cost of healthcare and the fact that in the United States,...

Q:

I'd like to have this document reviewed. It's my finance assignment but the answers are from another student. I'd lke to please have this assignment reviewed and re-worked so it's not plagiarized....

Q:

PART A: What happened to health insurance coverage for Individuals (the unemployed and self-employed) between 2000 and 2010? Was this related to Preexisting Conditions? PART B: By 2009, on any given...

Q:

DOS Corporation is considering two possible investments and needs your help in determining which will be the better financial option. Perform the necessary calculations using Microsoft Excel so that...

Q:

Dale's employer withheld $9,873.33 in federal taxes last year. His tax is $8,792.75. a. Does Dale get a refund or does he owe the government money? b. What is the difference between Dale's tax and...

Q:

30. Suppose that we have two events, A and B, with P(A) = .50, P(B) = .60, and P(A B) = .40. a. Find P(A B). b. Find P(B A). c. Are A and B independent? Why or why not?

Q:

Set some personal development goal for yourself for the coming year. Note in your journal your reactions as you set this goal, and note your progress toward that goal in your journal.

Q:

You take $100 you had kept under your mattress and deposit it in your bank account. If this $100 stays in the banking system as reserves and if banks hold reserves equal to 10 percent of deposits, by...

Q:

Happy Bank starts with $200 in bank capital. It then takes in $800 in deposits. It keeps 12.5 percent (1/8th) of deposits in reserve. It uses the rest of its assets to make bank loans. a. Show the...

Q:

The Federal Reserve conducts a $10 million open-market purchase of government bonds. If the required reserve ratio is 10 percent, what is the largest possible increase in the money supply that could...

Q:

QUESTION 14 Which of the following ratios is purely a performance ratio? current ratio times interest earned ratio return on assets ratio debt to assets ratio (debt ratio)

Q:

James Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 144,000 shares of stock outstanding....

Q:

Answer questions as an Entrepreneur Interview Assignment 1. How do you define success as a business owner? 2. What are your goals you're yourself and the company over the next 3-5 years? 3. What is...