500 Deductibles Case Study

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Question 1: Suppose the government were to enact universal coverage with $2,500 deductibles. What problem would that policy solve? What problems would it cause? Answer: It would solve the problem of adverse selection because if enacted, everyone would be in the same group. Placing the $2,500, deductible into the process would eliminate the “Moocher of Free Riders” because everyone would be paying in and, would possibly reduce people going to the doctor for any and every symptom. Conversely, having the deductible could place a burden on those in lower income brackets and prevent them from seeking medical care because of the deductible. For some, it could be a choice between a doctor’s visit and feeding the family. Question 2: One of

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