Question 1 [1 point) Health Maintenance Organizations {HMCIsJ offer ___ whereas Preferred Provider Organizations [PPOsl offer ___ 0 All narrow choice and low premiums; wide choice and higher premiums 0

Question 1 [1 point) Health Maintenance Organizations {HMCIsJ offer ___ whereas Preferred Provider Organizations
[PPOsl offer ___ 0 All narrow choice and low premiums; wide choice and higher premiums 0 Bl wide choice and high premiums; narrow choice and high premiums 0 Cl wide choice and high premiums; wide choice and high premiums 0 D} wide choice and low premiums; narrow choice and high premiums
0 E} narrow choice and high premiums; wide choice and high premiums Question 2 [1 point) Countries where universal coverage is achieved through insurance mandate and managed
competition {such as in Holland and Germany] face an adverse selection problem because markets
separate low and high risksr these latter remaining potentiallv without coverage clue to exorbitant
premiums. Such countries overcome this market failure by using ___ in order to level the field for
their insurers to face ___ 0 All community-rated premiums: similar risk pools
O B} a single tax-funded insurance plan for all; identical risks 0 Cl community-rated premiums: identical average revenues
O D} a risk-equalization mechanism; a single type of insuree O E} a risk equalization mechanism; similar risk pools

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