What can health insurance companies do to minimize problems associated with asymmetric information such as adverse selection or moral hazard? To deal with asymmetric information
insurance company can require policyholders to pay a coinsurance
Explanation:
correct answer is insurance company can require policyholders to pay a coinsurance
symmetric information is exploited and it is also known as information failure, is when a transaction has more information than the other party.
Insurers may be required to make deductible payments to policyholders to deal with inaccurate information; Limiting coverage of pre-existing conditions; Or ask applicants to submit medical records
