Hello! I have a 5 question assignment. I finished the first two questions already but need help with the last 3. I inserted the first two with the answers so that you can have some background information on what it is asking.

Q1 )What sort of market failure** existed prior to 1965 which prevented the free market for health insurance, Blue Cross and Blue Shield, from satisfying the need for the elderly to protect against the risk of catastrophic health events?

Answer: Market failure occurred because of asymmetrical information.

Q2) Explain how this market failure, if uncorrected, would cause harm to individuals that could be prevented if free markets worked (did not fail)

Answer: Ifuncorrected, insurance market would operate at the inefficient level and the people with most need of the insurance would be left without insurance.

Q3) What government agency or program exists to try to correct this market failure?

Q4) What private sector, industry, or group of individuals would have a financial incentive to capture this government agency, or capture the process of creating the law, policy or rule that is supposed to correct the market failure?

Q5) Describe any Hallmarks of Regulatory Capture **that you see in this area of the health care system