Assume Health Insurance is provided universally by the government.This would
A) eliminate the problems of adverse selection.
B) result in adverse selection.
C) eliminate the problems of moral hazard.
D) All of the above.

Question

Quizplus · Accepted Answer

Universal health insurance provided by the government would eliminate adverse selection because everyone is covered, so there is no risk of only high-risk individuals opting in. However, it does not eliminate moral hazard, which is the tendency of individuals to consume more healthcare services when they are not directly bearing the cost.

Assume Health Insurance Is Provided Universally by the Government