As a result of adverse selection problems in the health insurance market, it is likely that over time
A) fewer healthy people will be insured.
B) fewer unhealthy people will be insured.
C) fewer healthy and unhealthy people will be insured.
D) more healthy people will be insured.

Question

Quizplus · Accepted Answer

Adverse selection in health insurance occurs when unhealthy individuals, who anticipate high medical costs, are more likely to purchase insurance, while healthy individuals, anticipating low medical costs, may opt out. This leads to a pool of insured individuals that is less healthy on average, increasing costs for insurers and potentially driving premiums up. As a result, even fewer healthy people may choose to be insured due to the higher premiums, exacerbating the problem.

As a Result of Adverse Selection Problems in the Health