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

Question

Quizplus · Accepted Answer

Mandatory health insurance coverage would help to reduce the cost of health care because it would increase the size of the risk pool, spreading the risk of illness and injury among a larger group of people. This would also help to overcome adverse selection in the market for health insurance, where healthy people may opt out of buying insurance, leaving only the sicker individuals in the risk pool. Finally, if healthy people were required to have insurance, it would keep premiums lower overall than if they could opt out, as the risk pool would be less skewed towards higher-risk individuals.

Some Policy-Makers Have Suggested That Mandatory Health Insurance Coverage Would