As healthy people choose to pay for their health care directly rather than pay health insurance premiums,

0 votes
    insurance companies will try to reduce the problem of adverse selection by offering group insurance at places of employment.
     the proportion of unhealthy people in the insurance pool rises, leading to higher costs and premiums.
     adverse selection arises as the proportion of unhealthy people in the insurance pool rises.
     All of the above.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
All of the above.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...