_______ occurs when insurance companies structure plans that provide an incentive for healthier consumers to enroll while discouraging enrollment of higher-risk individuals.

Question

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Cherry-picking refers to the practice where insurance companies design their plans in such a way that they attract individuals who are less likely to use medical services (healthier consumers) and deter those who are more likely to need medical care (higher-risk individuals). This is done to minimize the insurer's risk and financial liability.

_______ Occurs When Insurance Companies Structure Plans That Provide an Incentive