Adverse Selection Explained
Adverse selection is often misunderstood; it's not just about individuals knowing more about their health than insurers. Insurance companies, constrained by government regulations, typically charge the same rates regardless of health status, leading to a different kind of adverse selection. The implications of these policies, particularly in the context of the ACA, highlight a significant disconnect between economic theory and real-world application.In this clip
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EconTalk
John Cochrane on Health Care
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