Metal levels make decisions about healthcare services

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Reference no: EM132305904

In the March 31, 2016, HHS-Operated Risk Adjustment Methodology Meeting Discussion Paper (March 24, 2016) discussed the concept of varying cost-sharing levels. In the HHS-HCC risk adjustment model diverse levels of cost-sharing have been incorporated into the insurance plans. The Affordable Care Act established four health plan tiers which are referred to as “metal levels.” The levels are:

• Platinum 90/10 plan

• Gold 80/20 plan

• Silver 70/30 plan

• Bronze 60/40 plan

Examine this structure from the view point of moral hazard. How would members in the different metal levels make decisions about healthcare services? Do you think four levels of cost-sharing meet the needs of the US healthcare market? Justify your position.

Reference no: EM132305904

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