The 2010 Health Care Reform Law, also known as "Obamacare," includes a part known as universal coverage which requires everyone to have health insurance. One reason for this is to address the problem of

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Adverse selection occurs when there is a lack of symmetric information prior to a transaction, leading to a situation where healthier individuals opt out of health insurance, leaving a pool of more risk-prone individuals. This increases the cost for insurers, which can be mitigated by requiring everyone to have health insurance, thus spreading the risk.

The 2010 Health Care Reform Law, Also Known as "Obamacare