Question
how insurance premiums are determined in a competitive market?
why public insurers "competing" with private insurers have an inherent advantage what is the consequences of insurers underpricing insurance what is income elasticity of demand and how it differs among different health care needs how tax law may accelerate the rate of health care inflation? what is moral hazard and the how insurance plans are structured to reduce moral hazard in terms of financial theory, why stock prices of health insurance companies reacted they way they did after the public option was rumored to be off the table?
3 months ago - 1 answers
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Each company hires actuaries to determine their premiums. Here in the USA, there really isn't any competition between public (government) insurance and private. Two lines are exclusively government run - unemployment insurance, and flood insurance. One line has both public and private - health insurance, but those who QUALIFY for public health (medicare and medicaid) also buy private insurance if they can afford it, because of the limitations of public health insurance. Public health insurance is "sold" at a DRASTICALLY underpriced amount, heavily subsidized by the taxpayer. For the rest, you're looking at major thesis work here - you should start with Wikipedia.
by mbrcatz
3 months ago
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