Central features of all approaches to financing healthcare

The failure of health insurance markets adverse

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Unformatted text preview: worried about and this will take care of visible things) Social arrangements (compulsory, mandated by law) vs. Private Insurance (optional for individuals, groups; public or private management) Moral hazard (over- use because consumer does not have to pay) If my insurance covers everything everytime, ill walk into doctors with sniffles and insurance will get mad. Adverse Selection (high- risk patients more likely to seek insurance, conceal their conditions) Risk selection (cherry- picking/cream skimming): insurers seek to recruit low- risk patients Insurer want to g...
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This document was uploaded on 04/01/2014.

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