Some policy makers have suggested that mandatory health insurance coverage would:
A) help to reduce the cost of health care.
B) 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 reduce the cost of health care by spreading the risk among a larger pool of insured individuals. It would also overcome adverse selection in the market for health insurance since healthy individuals would not be able to opt out and leave only those with higher health risks in the pool. As a result, premiums would be lower than if healthy people could opt out. Therefore, all of these statements are true.

Some Policy Makers Have Suggested That Mandatory Health Insurance Coverage