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What problem does the US Affordable Care Act ("Obamacare") attempt to address and how does it do so? It addresses selection bias by creating a healthcare system which is fully publicly -funded. It addresses moral hazard by allowing hospitals to refuse treatment to those who cannot pay for it. It addresses selection bias by forcing everybody to buy health insurance or else face a tax penalty. It addresses moral hazard by forcing hospitals to provide emergency services to those who cannot pay for it.

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What problem does the US Affordable Care Act ("Obamacare") attempt to address and how does it do so?
It addresses selection bias by creating a healthcare system which is fully publicly -funded.
It addresses moral hazard by allowing hospitals to refuse treatment to those who cannot pay for it.
It addresses selection bias by forcing everybody to buy health insurance or else face a tax penalty.
It addresses moral hazard by forcing hospitals to provide emergency services to those who cannot pay for it.

What problem does the US Affordable Care Act ("Obamacare") attempt to address and how does it do so? It addresses selection bias by creating a healthcare system which is fully publicly -funded. It addresses moral hazard by allowing hospitals to refuse treatment to those who cannot pay for it. It addresses selection bias by forcing everybody to buy health insurance or else face a tax penalty. It addresses moral hazard by forcing hospitals to provide emergency services to those who cannot pay for it.

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EvanMaster · Tutor for 5 years

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The US Affordable Care Act ("Obamacare") primarily aims to address the issue of selection bias by requiring everyone to have health insurance or face a tax penalty. This mandate helps create a more balanced risk pool by including healthier individuals in the insurance system, preventing only those with higher health risks from seeking coverage. This approach is designed to stabilize and improve the overall functioning of the healthcare insurance market. The act also includes provisions to expand Medicaid, provide subsidies for low-income individuals to afford insurance, and implement essential health benefit requirements to ensure comprehensive coverage. The act does not address moral hazard by allowing hospitals to refuse treatment based on the ability to pay; instead, it focuses on increasing access to healthcare services for a broader population.
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