Critics of the Affordable Care Act argue that it may _____ adverse selection but _____ moral hazard.
A) decrease; increase
B) increase; decrease
C) increase; leave unchanged
D) decrease; leave unchanged

Question

Quizplus · Accepted Answer

The Affordable Care Act may decrease adverse selection because it requires that everyone has health insurance, which limits the ability of healthier individuals to opt-out, leaving insurers with a pool of sicker individuals. However, it may increase moral hazard because individuals may not be as careful about their health behaviors and utilization of medical services knowing that they have insurance coverage.

Critics of the Affordable Care Act Argue That It May