Since the introduction of the Impanian National Health scheme, Impanians (or their private insurance companies) have ...
0tas>January 8, 2021
This has to do with choice B
After reading the explanation about choice B, I still cannot understand why the answer is wrong. If government covered 80% of the healthcare costs, how is it that private insurance would become cheaper? In my first attempt at this question, I thought that if government covered 80% of its people's healthcare costs, the people would have more money left, and since they would have more money left, private insurance companies would boost the price of the insurance they offer since the people have more money to pay for private insurance. What is wrong with my approach?
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Thanks for the question! Well, (B) basically talks about the benefits to the private insurers. Because the point was that they wouldn’t have to bear the bulk of health care costs which they used to do. But that doesn’t help explain the actual outcome, which is that the cost of private health insurance increased dramatically. Remember, this is a paradox question; we’re trying to figure out ways to explain how the unintuitive outcome happened. (B) basically restates a premise in the argument, and so it can’t do anything to help explain the paradox, since we need to find something else that’ll help explain it. Thus, it is wrong.
Hope this helps! Feel free to ask any other questions that you might have.
