Regional Vice President of Sales The Retirement Plan Company
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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Loan & Distribution Specialist AimPoint Pension
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Compass
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Bates & Company, Inc.
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AimPoint Pension
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Question: Guaranteed Issue Can Lead to Adverse Selection. Why Is This?
Milliman Jan. 15, 2008
Excerpt: This unintended consequence is important to note, because availability of coverage is generally not a problem. Affordability is the greater concern. Simply requiring a guaranteed issuance of coverage will not improve the affordability of coverage and, depending on the other requirements in place, may very likely make coverage even less affordable for most people because of the adverse selection it invites. So guaranteed issue can have the opposite effect of that intended as health coverage becomes less affordable.
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