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BKH70041

(961 posts)
11. An Adverse Selection Problem Does Indeed Seem To Be Materializing
Fri Jan 24, 2014, 06:54 PM
Jan 2014

The reason the age distribution is important is that younger people tend to be healthier, meaning that they consume less medical services and are cheaper to insure. But some young people are sick too, and if they are the ones buying ObamaCare policies, that aggravates selection despite their tender years. But while this problem can be identified and anticipated, there is no way to estimate its magnitude. Insurance companies no longer ask about pre-existing conditions.

IOW, watch out.

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