Adverse selection favors public insurance over private, genetic tests threaten coverage.
The article looks at why people might prefer public insurance over private insurance when given the choice. They use a theory that considers how people feel about risk and money to show that public insurance can be more appealing, especially if private insurance ends up mostly attracting high-risk individuals. The theory also suggests that public insurance becomes even more attractive when people are risk-averse. The researchers also found that using genetic tests could make public insurance less popular.