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HCA 6-14 Exam Questions with 100% Verified Solutions Rated A+
adverse selection - Occurs when high risk individuals, that is, people who are more likely to use many health services, enroll in health insurance plans in greater numbers, compared to people who are healthy 
*When adverse selection occurs, premiums have to be raised for everyone 
 
adjusted community rating - AKA "modified community rating" 
 
*Overcomes the drawbacks of experience rating and pure community rating 
 
*Under this method, price differences take into account demographic fa...