00:01
Okay, guys, this is chapter 22, problem 4.
00:06
This question is asking us about president obama's 2010 health care law that included the following two provisions, that insurance companies have to offer health insurance to everyone who applies, and also has to, everybody has to buy health insurance.
00:27
So the first part of this question, right, which of these provisions taken on its own? addresses the adverse selection problem.
00:37
Oh, sorry, which of these policies taken on this own makes the adverse selection problem worse? the first part, part one.
00:53
And that's because charging everybody the same price for health insurance means that you're going to have to charge everybody a higher price.
01:08
If you used to be able to turn the expensive people away, the people that have the pre -existing conditions, and now you have to accept them, you're going to have to charge everybody a higher price.
01:20
And it's the higher prices that make it so aggravates the adverse selection problem.
01:26
And so then why do you think the policy identified in a, was included in the law? well, it was to make sure that everybody had access to care...