Question

What can health insurance companies do to minimize problems associated with asymmetric information such as adverse selection or moral​ hazard? To deal with asymmetric​ information

Answer 1

insurance company can require policyholders to pay a coinsurance

Step-by-step explanation:

• correct answer is insurance company can require policyholders to pay a coinsurance
• symmetric information is exploited and it is also known as information failure, is when a transaction has more information than the other party.
• Insurers may be required to make deductible payments to policyholders to deal with inaccurate information; Limiting coverage of pre-existing conditions; Or ask applicants to submit medical records