Suppose health-care reform X makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease.One unintended effect of this reform is that some people

Question

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The reform removes the risk for people with preexisting diseases to be denied insurance, which gives them an incentive to wait until they need the insurance to buy it. This behavior could lead to adverse selection, which is a situation where only people with a higher risk of getting sick sign up for insurance, driving up the costs for the insurance provider. Choices A and C could also happen, but they are not necessarily the most likely unintended effect of the reform in question.

Suppose Health-Care Reform X Makes It Unlawful for Insurance Companies