Related to the Economics in Practice on page 359: The individual mandate feature of the Affordable Care Act potentially broadens the pool of people who are in the health insurance market. Including young, healthy people in this pool via the mandate should potentially reduce ________ and ________ overall health care costs.
A) adverse selection ; raise
B) asymmetric information; raise
C) adverse selection; lower
D) asymmetric information; have no impact on

Question

Quizplus · Accepted Answer

The individual mandate of the Affordable Care Act aims to include more young, healthy individuals in the health insurance market, which can reduce adverse selection (where insurers cannot accurately price risk due to information asymmetry, leading to a pool of higher-risk individuals) and lower overall healthcare costs by spreading the risk across a healthier population.

Related to the Economics in Practice on Page 359: the Individual