Given that there are differences between benefit/premium ratios for group when compared to individual insurance contracts. Use this as a guideline when answering the following questions.

When know that people when seen as individuals are excluded from (due to access for various reasons) group insurance plans discuss this as an externality issue. What does this imply for that person facing the choice of individual insurance vs. group insurance Please use the health insurance demand model in your explanation.

that government might intervene in.

What if the government subsidizing all potential individual insurance purchasers so that they could purchase individual insurance or requiring standardized insurance contracts that ensured individual purchasers are able to receive the economic benefits of group insurance. What four types of governmental interventions do these represent? What are the benefits or problems/limitations of these interventions by the government, What do you think would be the best approach?

that government might intervene in.

Consider two potential government responses to this issue: 1) subsidizing all potential individual insurance purchasers so that they could purchase individual insurance; and 2) creating/requiring standardized insurance contracts that allow individual purchasers to obtain the economic benefits of group insurance. Discuss the benefits or problems/limitations of these potential government interventions, indicate which of the four types of government intervention they represent, and indicate which (or both together) you believe would be the best approach and why.