PUP 4931r Lecture Notes - Lecture 43: Co-Insurance, Copayment, Reinsurance
6 Apr 2018
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Loss level at which insurance company"s reinsurance kicks in. Techniques for enhancing favorable selection and avoiding adverse selection: sales strategies waiting times co-pays, deductibles, co-insurance, premiums benefit scope and duration offering new plans to attract those with low transition costs of switching (enhancing favorable selection) Deductibles: the amount the insured pays before benefits are paid by the plan paid out-of-pocket each time health services are received. Fixed charge paid out-of-pocket each time health services are received. % of bill paid out-of-pocket for most services. Health care in competitive markets is passed on as foregone wages. Yet costs are distributed equally within the firm regardless of salary. So ,000 worth of insurance costs a third of a secretary"s wages. Also gives highest (cid:1688)avoided tax(cid:1689) benefit to highest salaried. Lower wage workers greater % increase in worker costs. One estimate: life expectancy of small firm offering hi is.
