Instructions: Decide whether each statement is true, false or uncertain and explain your answer. A few sentences should suffice.

1. The AFP for a health plan covering 80% of all medical expenses will be 20% lower than the AFP for a health plan covering 100% of all medical expenses.
2. Managed care plans are less attractive to consumers than traditional health plans because traditional plans don't try to "manage" utilization of high-cost treatments.
3. Under a FFS payment system, physicians have an incentive to encourage higher-priced treatments over lower-priced ones.
4. By forbidding insurers from charging higher premiums to persons with pre-existing conditions, the ACA helped reduce adverse selection problems in the nongroup market.