Which is correct

A. It may lead to community rating

B. It may lead to abuse of health insurance cover

C. Moral Hazard in health insurance would mean adverse selection

D. Risk pooling will be there in moral hazard

Answer: Option C

Solution(By Examveda Team)

Moral Hazard in health insurance would mean adverse selection. Moral hazard occurs when there is asymmetric information between two parties and a change in the behavior of one party after a deal is struck.