Consider the following case:
Bob has a pre-existing condition that costs $10,000 per year. Calculate the fair and full insurance premium for Bob. Bob’s utility function is . Is he better off buying the insurance or not?What happens to insurance firms if they are forced to offer insurance policies that cover pre-existing conditions?
Why is the following statement considered a myth by health economists? Use reasoning and evidence.
Covering the uninsured pays for itself by reducing expensive and inefficient emergency room care. Get Economics homework help today
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