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a problem of “market failure” in health insurance resulting from the inability of insurers to classify correctly the “types” of individuals seeking to buy insurance from them and their response

Economics

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a problem of “market failure” in health insurance resulting from the inability of insurers to classify correctly the “types” of individuals seeking to buy insurance from them and their response. Does mandating “universal insurance” (i.e., requiring every individual to have a health insurance policy from some source) solve this problem completely, or is some other step (e.g., requiring community rating) necessary?