Healthcare Economics



Healthcare Economics

Chapter 10: Exercise # 8

Part (a)

It is a fact that the large pool of insured person keep the insurance company's in business. There is term “Variability of Insured Population Risk” which means that the risk attached to the insured population risk varies from population groups. This variability of risk is inversely related to the number of people insured because with additional insured consumers the chances of losses for insurer decline. Because a large pool of insured people is compromised of different groups of population and the risk attached to each group is different. It can also be seen ...