Question

The rationale behind the Individual Mandate of Affordable Care Act is to prevent Adverse Selection Death Spiral from happening - i.e to make the risk pool as complete as possible.

T or F

Answer 1

True
rational behind the individual mandate of affordable care act is to prevent adverse selection death spiral from happening. i.e to make the risk pool as complete as possible.

Because.

Affordable care act make actuarial work more difficult putting insurance providers and low risk customers at an economic disadvantage.Affordable care act is known as individual mandate. It was specially designed to stop adverse selection from take over the health insurance market after the the affordable care at went into effect.