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:

Connective Tissue

Tissue that supports, binds, or separates other tissues or organs, consisting of cells embedded in a large amount of extracellular matrix.

Bacteria

Simple, single-celled microorganisms that can exist either as independent organisms or as parasites.

Urothelial Abnormality

Irregularities or changes in the urothelium, the epithelial lining of the urinary tract, which can indicate disease or injury.

Urinary Tract Infection

An infection in any part of the urinary system, including the bladder, kidneys, ureters, and urethra, often caused by bacteria.