If there is adverse selection in the health insurance market then this means that:
A)insurance companies can identify all the health problems facing its customers
B)the price of health insurance may be greater than the costs of covering the average person's health risks
C)people with severe but hidden health problems are less likely to buy health insurance than other people
D)people in average health are encouraged to purchase health insurance

Question

Quizplus · Accepted Answer

Adverse selection occurs when those with higher health risks are more likely to purchase insurance, leading to higher costs for insurers and potentially higher premiums for everyone.

If There Is Adverse Selection in the Health Insurance Market