In insurance terms,what does adverse selection refer to? (Cost Advantage)

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Adverse selection refers to the tendency of an insurance pool to disproportionately attract "bad risk" employees and discourage "good risk" employees. This happens when employees who are likely to have higher medical costs are more likely to enroll in the insurance plan, while healthier employees opt out, which leads insurance companies to raise premiums to cover the higher costs.

In Insurance Terms,what Does Adverse Selection Refer To? (Cost Advantage)