If a state requires all drivers to buy health insurance, the problem of adverse selection is eliminated.

Name: If a state requires all drivers to buy health insurance, the problem of adverse selection is eliminated.
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Adverse selection occurs when individuals with higher expected medical costs are more likely to purchase health insurance. When all drivers are required to buy health insurance, this problem is eliminated because everyone is in the same pool, regardless of their health status.

If a State Requires All Drivers to Buy Health Insurance