How Does Free Riding Affect the Cost of Health Insurance

question 16

Multiple Choice

How does free riding affect the cost of health insurance?

• A) It has a dramatic effect on those who choose not to buy coverage because they will have to pay hefty bills if they need treatment.
• B) It decreases the availability of health care for all because fewer people choose to enter the health care profession.
• C) Premiums rise for those with health care because insurance companies need to pay more for an increasingly expensive risk pool.
• D) Indirectly at best because insurance companies could keep the cost of premiums down if they deployed technology more effectively.

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Definitions:

Cost of Building

The total financial expense incurred through the construction of a building, including materials, labor, and any other costs.

Supply Curve

A diagrammatic representation that outlines the association between an item's market price and the supply level that vendors are inclined to sell at that price.

Supply

The total amount of a product or service that is available to consumers in the market.

Hypertensive Chronic Kidney Disease

A condition characterized by long-term kidney damage, primarily caused by high blood pressure, affecting the kidneys' ability to filter waste from the blood.