Lecture 7 done Flashcards
1
Q
What are the paradoxes of health insurance?
A
ensures payment but restricts reimbursement, restricts utilization, encourages uncessary use, millions uninsured
2
Q
What are the principles of insurance?
A
reduce unanticipated risk, and insurable risk
3
Q
What makes an insurable risk?
A
calculate probability of event, rare event, accidental loss, result is substanial loss, loss measurable, insurable intrest
4
Q
What are the goals of health insurance?
A
transfer risk to insurance company
5
Q
What is a risk for insurers?
A
adverse selection-only purchase when needed
6
Q
What are potential solutions to adverse selection?
A
mandatory coverage, elimination period, self-insured plans
