The adverse selection death spiral in health insurance can be prevented by:

Question

Quizplus · Accepted Answer

Requiring health exams prior to issuing a policy and charging higher prices to unhealthy people is the best way to prevent adverse selection death spiral in health insurance. This ensures that healthy and unhealthy people are charged premiums according to their actual health status, which reduces the likelihood of healthy people dropping out of the insurance pool. This allows insurers to spread risk more effectively and prevent the death spiral from occurring.

The Adverse Selection Death Spiral in Health Insurance Can Be