This week you were introduced to several concepts around the theory of insurance in health care markets. Many of these ideas around health insurance drive a lot of what we observe in today’s health care marketplace – costs, capacity, and regulations – not to mention the costs of bad debt and charity care created by the extent to which people have no health insurance. Plenty of issues to address – all related to insurance. Your challenge in this assignment is to dive deeper into some key issues. You will need to do some research to successfully complete this task.
You will research and explain your answers to the following four (4) questions:
-How does provision of health insurance through place of employment contribute to increased health care spending?
-Explain how health insurance results in the overuse of health care?
-How does health insurance coverage affect the incentive to reduce medical expenses for the health care provider?
-How does the choice between community rating and experience rating affect the availability of health insurance?
