How policymakers can handle adverse selection
This video explains three ways that policymakers can handle adverse selection in health insurance. How do you get around the adverse selection problem? The options are: (1) Eliminate competition, (2) adjust for risk, or (3) use risk pooling. 0:00 - Overview 1:01 - What is Adverse Selection? 2:35 - 3 Solution Categories 2:58 - Solution 1: Eliminating Competition 5:45 - Problems w/ Eliminating Competition 7:23 - Solution 2: Risk Adjustment 12:07 - Problems w/ Risk Adjustment 14:11 - Solution 3: Risk Pooling 14:54 - Problem w/ Risk Pooling
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