All of these are used to prevent adverse selection in a group dental plan EXCEPT

• A. Provide evidence of insurability
• B. Probationary periods
• C. Waiting periods
• D. Decreased employee participation

Answer: (D)

Adverse selection happens when those most likely to need benefits are also the ones most eager to enroll, which can push up costs and threaten the stability of a group plan. To keep the risk pool balanced, insurers use measures that limit enrollment to people who are reasonably healthy and not just those who expect to need care.

Providing evidence of insurability uses health information to underwrite or price coverage, so high-risk individuals aren’t automatically granted benefits. Probationary periods create a waiting time before new hires gain coverage, which discourages joining solely to cover an imminent health need. Waiting periods do a similar job by delaying eligibility for certain benefits after enrollment, reducing the chance that someone enrolls only because they foresee medical costs.

Decreased employee participation, however, isn’t a tool to prevent adverse selection. When participation drops, the risk pool becomes less spread out, and costs can rise, which can actually worsen adverse selection. So the option that doesn’t fit as a preventive measure is decreased employee participation.