When adverse selection occurs,healthy people pay premiums that are _____ their actual health care costs.

Question

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Adverse selection occurs when those who are at a higher risk of needing healthcare are more likely to purchase health insurance. This means that insurers will charge higher premiums to cover the expected costs of these high-risk individuals. As a result, healthy people end up paying higher premiums that are higher than their actual healthcare costs.

When Adverse Selection Occurs,healthy People Pay Premiums That Are _____