may arise. This is when _____.    A. Bismarck; insurers seek out healthy customers.  B. Beveridge; insurers seek out health customers

This question is broken into 4 parts. Please answer all parts. A. Explain the relation between moral hazard and insurance premiums. B. Now think about how people with different health risks assess insurance products with a given deductible, and explain how supporters of minimizing adverse selection should think about a proposal (say from Bernie Sanders) that all insurance policies should have zero deductibles and coinsurance. C. Does community rating make the policy tradeoffs inherent in b harder or easier to manage? D. Would a purchase mandate make the policy tradeoffs inherent in b + c harder or easier to manage?

The Australian health sector suffers from informational asymmetry problems pertaining to ‘moral hazard’ and ‘adverse selection’. Please provide a reason for why you either agree or disagree with the statement.

T or F 10. Equity is one of the principles of the Canada Health Act. 11. Medically necessary services are privately funded in Canada. 12. Adverse selection is a problem of hidden action. 13. Asymmetry of information occurs when buyers and sellers have the same information. 14. Cost-plus pricing will cause a leftward shift in the supply curve for health care. 15. The problem of supplier-induced demand will cause a rightward shift in the supply curve for health care.

___ occurs when insurance companies structure plans that provide an incentive for healthier consumers to enroll while discouraging enrollment of higher-risk individuals a. Guaranteed renewability b. Cherry-picking c. Moral Hazard d. Asymmetric Information e. Adverse Selection