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.

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Definitions:

United States

A country in North America consisting of 50 states and a federal district, known for its significant impact on global politics, economy, and culture.

Great Britain

The largest island in the British Isles, comprising the countries of England, Scotland, and Wales.

Amnesia

A condition involving the loss of memories, such as facts, information, and experiences, typically due to brain injury or psychological trauma.

Psychogenic

Originating from psychological causes rather than physical ones, often referring to symptoms or illnesses.