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Answer to Question #92322 in Microeconomics for arab
Question #92322
Suppose in a given state's new insurance marketplace, with community rating and no restrictions, the risk pool is:
30% of eligible enrollees' expected health costs = $1,000 (per year)
65% = $2,000
5% = $10,000
what will be the community premium rate for this pool
30% of eligible enrollees' expected health costs = $1,000 (per year)
65% = $2,000
5% = $10,000
what will be the community premium rate for this pool
Expert's answer
0.3(1000)+0.65(2000)+0.05(10000) = $2100
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