Evaluate the social-cultural issues that are influencing adverse selection in insurance markets.

Prior to engaging in this discussion, please read Chapter 12 in the text, read the Rice (1997)
and the Korda and Eldridge (2011) articles, and review any relevant Instructor Guidance. It is
suggested that you also take a moment to review a few of the recommended articles to glean
any potential helpful information.
Opportunism in health care is especially perceptible in the health insurance markets. Consider
the area in which you live, specifically your state and local communities.
1. Evaluate the social-cultural issues that are influencing adverse selection in insurance
markets.
2. Propose some strategies for reducing adverse selection in health insurance within these
markets.
3. Develop a microeconomic model that is responsive to your local service demands.
4. Communicate how these issues are relevant to the economics of the greater U.S. health
care system.
5. What are the future implications with the Affordable Care Act?

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