In: Economics
One of the Affordable Care Act's features was a mandate requiring everyone to have health insurance. The mandate feature was included because
there is too little competition in insurance markets |
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there are externalities in the health insurance market |
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people purchasing health insurance have imperfect information about their policies |
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imperfect information in insurance markets requires that the pool of insured people include a wide range of health risks |
Imperfect information in insurance markets requires that the pool of insured people include a wide range of health risks
Explanation: Imperfect information in the health insurance market requires a pool of insured people with a wide range of health risks to diversify the total risk.