With passage of the ACA, insurance companies were required to offer health care insurance policies that were priced with "community rating". That is, individuals could not be charged more because of pre-existing conditions. Given this situation, describe how adverse selection in health insurance markets can lead to a death spiral, in which insurance becomes progressively more expensive, fewer individuals purchase insurance, and ultimately the insurance is unaffordable.

Answer rating: 100% (QA)

In the context of the Affordable Care Act ACA and its community rating requirement adverse selection in health insurance markets can lead to a death s... View the full answer