1.An insurance market consists of high-risk patients, who average $40,000 in spending per year, and low-risk patients, who average $1,000 per year. Overall, low-risk patients represent 90 percent of the population. What would average spending be for a population like this?
2What would average spending be if low-risk patients were 92 percent of the population?
3. If an insurer sold 100,000 policies at $6,000, what would revenue be? What would medical costs be if the insurer paid for everything and low-risk patients were 90 percent of the population? How would that change if low-risk patients were 92 percent of the population?
4.Why did hospitals have limited incentives to reduce readmissions before the ACA?
5.Where are reference prices being used? What have their effects been?
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