Which of the Following Is Not an Advantage of Risk

question 46

Multiple Choice

Which of the following is not an advantage of risk pooling?

• A)By insuring large groups as opposed to individuals, health insurance providers reduce adverse selection.
• B)It gives very sick people in the group the same access to health care and to pay the same premiums as healthy individuals.
• C)It is easier for an insurance company to estimate the average number of claims likely to be filed under a group policy than it is to predict the number of claims likely to be filed under an individual policy.
• D)Individuals who are insured and therefore do not have to pay the full cost of health care services may be inclined to over-use those services.

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