What is “adverse selection” in health insurance? What is “moral hazard”?
How do adverse selection and moral hazard affect health insurers’ policies? How will our profit
minded health insurer respond to the danger of moral hazard and adverse selection? What will
happen to an insurer who does not take account of moral hazard and adverse selection?
How do these insurer policies complicate the efforts by government to provide for universal
health insurance coverage?
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