Incentives, incentives, incentives (and adverse selection)

This is the second of a three-part series on the incentives involved in creating meaningful health care reform. If any major health care legislation is passed in the United States in 2009, it will almost certainly involve some form of an insurance exchange. This post focuses on the need to create competition in the private insurance market, incentives for insurers to focus on improving their insurees’ health, and strategies to help mitigate avoid adverse selection.