Some policy makers have suggested that mandatory health insurance coverage would:
A)help reduce the cost of health care.
B)overcome adverse selection in the market for health insurance.
C)keep premiums lower than they would be if healthy people could opt out of insurance.
D)All of these are true.

Question

Quizplus · Accepted Answer

Mandatory health insurance coverage helps reduce healthcare costs by spreading the risk across a larger pool of individuals, including both healthy and sick people. It overcomes adverse selection by preventing only those who expect to need healthcare from purchasing insurance. By including healthy individuals, it keeps premiums lower than they would be if these individuals could opt out, as the risk is shared more broadly.

Some Policy Makers Have Suggested That Mandatory Health Insurance Coverage