In an extreme case, the poor risks will be the only purchasers of coverage, and the insurer can expect to lose money on each policy sold. This situation, referred to as adverse selection, occurs when ...

Key Takeaways Adverse selection happens when sick people buy health insurance more than healthy people do.The Affordable Care Act prevents insurers from refusing to sell insurance to people with ...

Adverse selection, a concept economists devised to explain insurance market failures, might seem far removed from the grand chessboard of geopolitics. Yet at its core lies a simple and unsettling ...