Dura Foundation, a Voluntary Health and Welfare Entity Dedicated to Finding

question 55

Essay

Dura Foundation, a voluntary health and welfare entity dedicated to finding medical cures and supported by contributions from the general public, included the following costs in its Statement of Functional Expenses for the year ended December 31, 2018:

-What should Dura Foundation report as supporting service expenses?

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Definitions:

Deductibles

In insurance, the amount that the insured must pay out-of-pocket before the insurance company pays its share of the expenses.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured, often provided by employers or purchased individually.

Adverse Selection

A situation where asymmetry of information results in high-risk individuals being more likely to participate in an agreement or market, leading to an inefficient outcome.