Final answer:
The individual mandate, implemented under the Affordable Care Act, required individuals to have health insurance or pay a fine. The goal was to reduce adverse selection and keep premiums low.
Step-by-step explanation:
The individual mandate, implemented under the Affordable Care Act (ACA), required all individuals who did not receive health care through their employer or a government program to have health insurance or pay a fine. The goal of the mandate was to reduce adverse selection and keep premiums low. Adverse selection refers to the tendency for only the riskiest individuals to purchase insurance, which can drive up costs for insurers. By requiring everyone, including healthy individuals, to have insurance, the mandate aimed to spread the risk and prevent insurers from raising prices to compensate for high-risk policyholders. The individual mandate was an important component of the ACA's effort to increase coverage and make insurance more affordable for everyone.