Question

As an agent, you have an obligation to only enroll a consumer in a product:

A) That meets the interest you have in the transaction, for example commissions received for the sale
B) That is suitable for the consumer's needs, goals and financial resources
C) That meets the sales goal of the Centers for Medicare and Medicaid Services, UHC and the SSA
D) That provides a financial advantage to a network of providers

Answer 1

The main way of solving the adverse selection problem in the U.S. health insurance market is by selling health insurance through groups based on place of employment or through state government-sponsored health exchange markets. The Affordable Care Act also implemented an individual mandate to reduce adverse selection. This ensures that all individuals without health care through their employer or a government program have health insurance.

Step-by-step explanation:

In the U.S. health insurance market, the main way of solving the adverse selection problem is by selling health insurance through groups based on place of employment or through state government-sponsored health exchange markets. This approach helps mitigate the risk of only attracting individuals with high health risks. Selling insurance through an employer allows the insurance company to mix together a group of people with varying levels of health risks. The Affordable Care Act also addressed the adverse selection problem by implementing an individual mandate, which requires all individuals without health care through their employer or a government program to have health insurance or pay a fine. This helps reduce adverse selection and keep prices down by ensuring that even the healthiest individuals are covered.