1. In a minimum of 250 words, describe the concept known as adverse selection? Explain how does its existence affect the market for health insurance? List and describe a few examples of insurance companies protect themselves from adverse selection? For the second half of Week Five (5) discussion, explain moral hazard and how does it affect the demand for health insurance? What approaches do insurance companies use to control its existence? Once your material is posted, be sure to review and comment on the materials that at least two of your peers have located. Discussion should contain a minimum of 2–3 peer-reviewed references.

2. While the IRS does not have a similar resource as Edgar at the SEC, a third party has made it it’s mission to copy and make available on the internet the 990s of most organizations in the U.S. One can find this site at www.guidestar.org[Once at their homepage, a company must be found through it’s name as there is not a stock symbol. For example to find the financial statements and management commentary from for the healthcare provider, Intermountain Health Care, Inc, search on their corporate name, “IHC Health Services Inc.” It’s not uncommon for large not-for- profits to have many subsidiaries which are also included in Guidestar. You will just have to search for the correct one. Guidestar is itself a not-for-profit. To gain access to the 990 you will need to register, however registration is free. Other information is available at their site which requires a premium membership.]

Instructions: Using the above website, locate the 10-K of a for-profit health care organization along with the 990 for a not-for-profit health care organization in order to address the following questions below in a minimum of 250 words. Share your perceptions .

Discussion should contain a minimum of 2–3 peer-reviewed references

a. What were the names of the organizations that you selected and their main business? What are your thoughts on your experience in finding their financial information?

b. What is your biggest insight from this activity about the availability of financial information? How could you use this information in the