Assume a High-Risk Person;has a 0

question 13

Multiple Choice

Assume a high-risk person;has a 0.50 probability of a $500 medical expense and a low-risk person has a 0.10 probability of a $500 medical expense.Both types of people are risk neutral.What is the community rating premium for a neighborhood containing exactly half of each type of person?

• A)$300
• B)$250
• C)$150
• D)$50

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Definitions:

Magnesium Hydroxide

A chemical compound commonly used as an antacid to neutralize stomach acid or as a laxative for short-term relief of constipation.

Bid

An offer made by an individual or company to buy something or to perform a job for a certain price.

Narrative Charting

A method in medical documentation where healthcare professionals detail a patient's care, condition, and progress in a story-like format.

Healthcare Provider

A professional who delivers care and services to individuals, including diagnosis, treatment, and prevention of illness and injury.