Governments can address the adverse selection problem in the health insurance market by requiring all its citizens to have health insurance.

Question

Quizplus · Accepted Answer

By mandating that all citizens have health insurance, governments can ensure a more balanced risk pool, reducing the problem of adverse selection where only those who expect to use health insurance are the ones to buy it, leading to higher premiums and potentially destabilizing the insurance market.

Governments Can Address the Adverse Selection Problem in the Health