Licensed to Ill
by Mathalicious

Continuing the scenario from before, imagine Beatriz has a heart attack at the end of year 3. Even though she is uninsured and can’t afford the surgery, the hospital saves her life, but increases the price of surgery to $50,000.

Without actually calculating anything, what effect do you think this will have on the price of insurance in year 4, and do you think this is fair? Explain your reasoning.