New York Times columnist David Brooks wrote about the implementation of the Affordable Care Act (ACA) and described a possible adverse selection cascade: “the young may decide en masse that it is completely irrational for them to get health insurance that subsidizes others.”   a.  Why might it be irrational for young and healthy people to buy health insurance?   b.  In what sense do young and healthy people who buy health insurance provide a subsidy to people who are older or who are ill?   c.  What do you think Brooks meant by an adverse selection cascade? How might the actions of young and healthy people contribute to adverse selection problems in the health insurance system?

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