Why do individuals demand health insurance? Does the health insurance provided through most employers more or less than people would get if purchased on their own? Why
What will be an ideal response?
Individuals primarily demand health insurance to protect themselves against low probability but extremely expensive medical expenses. The type of comprehensive health insurance provided through most employers exceeds the amount that most individuals would purchase on their own because employer contributions to employee health insurance plans are tax deductible. This creates a bias towards the type of comprehensive plans generally employed by employers.
You might also like to view...
How do the following affect the equilibrium price in a market?
a. A leftward shift in demand b. A rightward shift in supply c. A large rightward shift in demand and a small rightward shift in supply d. A large leftward shift in supply and a small leftward shift in demand
All of the following were actions taken by the government or the Fed in response to the Financial Crisis of 2007-2009 EXCEPT
A) purchasing of most toxic assets such as mortgage-backed securities. B) reducing the federal funds rate to near zero. C) insuring deposits in money market mutual funds. D) effective nationalization of Fannie Mae and Freddie Mac.