One Reason Why Adverse Selection Problems Arise in Health Insurance

question 63

Multiple Choice

One reason why adverse selection problems arise in health insurance markets is that

• A)sick people are more likely to want health insurance than healthy people.
• B)because of advances in medical technology, people are living longer. These medical advances are costly and drive up the price of insurance for everyone.
• C)the average age of citizens of the United States has increased in recent years, and will continue to increase over the next 20 to 30 years. As older citizens retire, more and more of their medical bills will have to be paid by younger workers.
• D)fewer men and women are choosing medical careers because of the increase in the cost of malpractice insurance.

---

Definitions:

Cross-sectional Study

A research method that analyzes data from a population, or a representative subset, at a specific point in time to make inferences about the population.

Different Age

Different age typically refers to a significant age difference between individuals, which may influence their perspectives, interactions, or developmental stages.

Retested

The act of administering a test or assessment again to the same subject or group, often to check for consistency or progress.

Marital Satisfaction

A measure of the happiness and contentment individuals feel within their marriage or long-term romantic partnership.