Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
You are considering the choice between the following three health plans offered by your employer:
i.)HMO; your premium contribution = $100/month. $0 copays / $0 deductible / 0% coinsurance. Limited network of docs and hospitals
ii.)PPO; your premium contribution = $200/month. $0 copays / $500 deductible in network /20% coinsurance in network / $1500 deductible out of network / 30% coinsurance in network. Limited network of docs and hospitals
iii.)HDHP; your premium contribution = $75/month. $0 copays / $2500 deductible / 0% coinsurance. No network restrictions
Assume that the employer charges you more for the PPO than the HMO and HDHP because the PPO costs the employer more to provide that plan. How could the HMO cost be less than the PPO cost? In particular, the HMO appears to be more generous, which would imply higher costs due to moral hazard
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