Uploaded January 2021 | Updated September 2026, 2 weeks ago

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This video explains three ways that policymakers can handle adverse selection in health insurance. How do you get around the adverse selection problem? The options are: (1) Eliminate competition, (2) adjust for risk, or (3) use risk pooling.
0:00 - Overview
1:01 - What is Adverse Selection?
2:35 - 3 Solution Categories
2:58 - Solution 1: Eliminating Competition
5:45 - Problems w/ Eliminating Competition
7:23 - Solution 2: Risk Adjustment
12:07 - Problems w/ Risk Adjustment
14:11 - Solution 3: Risk Pooling
14:54 - Problem w/ Risk Pooling