2009mt2 - HPAM8600 Health Economics Professor Angela Fertig...

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HPAM8600: Health Economics UGA College of Public Health Professor Angela Fertig Spring 2009 Name Midterm 2 1. (6 points) Which of the following are true statements about adverse selection (circle all that apply): (a) Lower risk individuals will pay higher premiums than in the absence of adverse selection. (b) Higher risk individuals will pay higher premiums than in the absence of adverse selection. (c) Lower risk individuals will tend to underinsure. (d) Higher risk individuals will tend to underinsure. 2. (6 points) Which of the following are true statements about ‘take-up’ of public programs like Medicaid (circle all that apply): (a) People do not take-up because of the stigma associated with the program. (b) People do not take-up because of the informational or transactional barriers. (c) People eligible for Medicaid do not take-up because Medicaid will cover their emergency care if needed. (d) States that are strapped for cash can save money if the rates of take-up are lower.
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2009mt2 - HPAM8600 Health Economics Professor Angela Fertig...

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