Unformatted text preview: that insurance companies charge individuals with health problems no more than individuals without health problems. Would this help reduce the number of uninsured? Explain. 5. Most private health insurance plans have out-of-pocket limits, which limit the total amount an insured individual can pay in any given year. For example, a plan may have a 10% copayment on all medical services and a $5,000 out-of-pocket limit. If an individual insured under that plan incurs $60,000 of medical expenses in one year, the individual will pay 10% of the first $50,000 ($5,000) after which the insurer will pay 100% of expenses. Currently Medicare does not have an out-of-pocket limit. Suppose the government is considering adding an out-of-pocket limit. What are the advantages of doing so? What are the disadvantages of doing so? Page 1...
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- Spring '11
- Economics, out-of-pocket limit