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Adverse Selection
A situation where asymmetrical information leads to the selection of poor risks by one party in a contract or agreement.
Policy Premiums
The amounts paid for insurance policies by the insured to the insurer to provide coverage for various risks.
Medical Expenditures
The total amount spent on healthcare services and products in a given period.
Asymmetric Information
A situation where one party in a transaction has more or better information than the other, leading to imbalances in power or decision-making.
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