Community rating
Adverse selection
Abuse of health insurance
Risk pooling
✅ The correct answer is B.
Moral hazard by health insurance companies can result in adverse selection. Adverse selection occurs when there’s a lack of symmetric information prior to a deal between a buyer and a seller.
Moral hazard by health insurance companies can result in adverse selection. Adverse selection occurs when there’s a lack of symmetric information prior to a deal between a buyer and a seller.