Which of the following should help reduce the adverse selection problem?

Question

Quizplus · Accepted Answer

All of the options listed contribute to reducing the adverse selection problem in health insurance markets. The employer mandate (A) requires employers to offer health insurance to employees, expanding the pool of insured individuals beyond those who might seek insurance due to poor health. The individual mandate (B) requires all individuals to have health insurance or face a penalty, which helps to ensure that healthier individuals, who might otherwise opt out, participate in the health insurance market. Keeping high-risk and low-risk individuals in the same pool (C) prevents the segmentation of the insurance market, which can lead to adverse selection where only those expecting high medical costs buy insurance, driving up premiums. Collectively, these measures aim to balance the risk pool and make insurance more affordable and accessible for everyone.

Which of the Following Should Help Reduce the Adverse Selection