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Business, 12.03.2021 19:30 girlgirl7230

Without a government mandate to purchase insurance, as premiums rise, the healthy people are likely to stop purchasing insurance. This causes the insurance company to face expected costs per person, thus forcing it to premiums in order to break even. The cycle continues until only the healthy remain to purchase insurance. This phenomenon is known as a death spiral.

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Without a government mandate to purchase insurance, as premiums rise, the healthy people are likely...
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