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1.  After the ACA, how do health insurers primarily adjust premium prices for health status?

a.     By using age as a proxy for health status.

b.     By requiring individuals to answer extensive questions about their health status

c.     By using "big data", or information revealed by an individual through their social media posts.

d.     By obtaining past medical records and classifying diseases into three broad categories. 


2.  Calculate the out of pocket spending in the following insurance plan - A co-pay for $20, coinsurance of 0% and deductible of 500. Assume that the doctor's visit cost $1000

a.     520

b.     500

c.     820

d.     800


3.   When is the social loss the lowest?

a.     A 20% coinsurance and high deductible

b.     A 20% coinsurance and low deductible

c.     A 20% coinsurance, low co-pays and high deductible

d.     A 20% coinsurance, high co-pays and high deductible 



4.    Which of the following is not an example of adverse selection?

a.     Increasing use of health care for health services like preventive care services

b.     Developing asthma that is the outcome of a mining job

c.     Not reporting a hereditary heart disease when signing up for insurance

d.     Increasing the number of cigarettes smoked once you get employer-based health insurance 



5.   Which of the following statements are correct?

a.     Symmetric information leads to greater efficiency and pareto optimality

b.     Symmetric information leads to greater efficiency but it may not be pareto optimal

c.     Asymmetric information leads to lower efficiency but it can be pareto optimal

d.     Asymmetric information leads to higher efficiency but it does not satisfy the pareto optimal condition


6.    Under the Rothschild-Stiglitz Model

a.     Cream-skimming can reduce costs for insurers

b.     The healthy pay a lower premium than the unhealthy

c.     The unhealthy and the healthy can co-exist

d.     Costs are reducing for insurance companies 

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1.After the ACA, how do health insurers primarily adjust premium prices for health status?
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