The Adverse Selection Death Spiral in Health Insurance Can Be

question 7

Multiple Choice

The adverse selection death spiral in health insurance can be prevented by:

• A) not selling to unhealthy people.
• B) requiring people to only purchase health insurance in individual policy markets.
• C) requiring health exams prior to issuing a policy and charging higher prices to unhealthy people.
• D) making policy buyers aware of the potential for the death spiral.

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Definitions:

Puckering

The act of contracting or gathering into wrinkles or folds, often referring to the lips.

Saliva

A clear liquid secreted by the salivary glands in the mouth, important for digestion and maintaining oral health.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which they're learned, often through conditioning, without reference to mental processes.

Conditioning

A basic kind of learning that involves associations among environmental stimuli and an organism’s behavior.