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QUESTION

What is "adverse selection" in health insurance? What is "moral hazard"? How do adverse selection and moral hazard affect health insurers' policies?

What is "adverse selection" in health insurance? What is "moral hazard"?

How do adverse selection and moral hazard affect health insurers' policies? How will our profit

minded health insurer respond to the danger of moral hazard and adverse selection? What will

happen to an insurer who does not take account of moral hazard and adverse selection?

How do these insurer policies complicate the efforts by government to provide for universal

health insurance coverage?

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