A Insurance companies must offer health insurance to everyon

A. Insurance companies must offer health insurance to everyone who applies and charge them the same price regardless of a person\'s preexisting health condition. B. Everyone must buy health insurance or pay a penalty for not doing so. People with preexisting health conditions are likely to incur medical costs. If insurance companies were allowed to charge applicants different prices, they will likely charge higher insurance premiums to people preexisting health conditions. True or False: If insurance companies have to charge all applicants the same price, health insurance premiums would likely fall. True False Which of the provisions of the health insurance reform attempts to solve the problem of adverse selection in the health insurance market? Provision A Provision B

Solution

a) People with a preexisting health condition are likely to incur \"higher\" medical cost.

These have higher chances of getting sick and visiting a doctor increasing their overall cost of getting medical care.

b) if charging different prices were allowed, they are likely to charge a higher insurance premium to people \"with\" preexisting health condition. \"People with preexisting condition will be charged more than the other who don\'t have such conditions\"

The statement \"if insurance companies have to charge all applicants the same price, health insurance premiums would likely fall\" is true. As everyone is charged at the same price the people with existing medical conditions will also pay the same premiums which would not be possible otherwise. NOw they are all considered same and charged equally.

Please mention which health reform the question is mentioning and in which country. Put it in the comment section and I will answer it.