Why does deadline have anything to do with adverse selection


Problem

In 2006 Medicare recipients were permitted to sign up for a federally subsidized drug benefit plan. The sign-up phase had a May 15th deadline, and those signing up after that date faced a premium penalty. Does this deadline have anything to do with adverse selection? Explain.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why does deadline have anything to do with adverse selection
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