Which of the following is NOT used to prevent adverse selection in a group dental plan?

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

Answer: (D)

Adverse selection happens when the individuals most likely to use benefits are more inclined to enroll in a group plan, which can drive up costs and destabilize the risk pool. To prevent this, insurers use enrollment controls that discourage joining for reasons tied to expected high claims. Waiting periods create a gap after hire before coverage starts, reducing incentive to join solely to receive immediate benefits. Probationary periods serve a similar purpose for new employees, delaying eligibility to deter short-term enrollment by high-need individuals. Providing evidence of insurability introduces health screening, ensuring that high-risk entrants aren’t automatically included or are priced accordingly. Decreased participation is not a tool used to prevent adverse selection; in fact, lower participation tends to worsen the risk pool by leaving a smaller, potentially higher-risk group.