Anti-selection
Those most likely to claim are those most likely to enrol.
Anti-selection, or adverse selection, is the tendency for people who expect to claim to be the ones who choose coverage. It pushes cost per insured above what a randomly selected group would produce.
It is why participation minimums, mandatory core benefits and late-applicant medical evidence exist. Those rules are not bureaucracy; they are what keeps voluntary coverage affordable.
What this means for a BC plan
Anti-selection is the reason most BC carriers require a minimum participation percentage before quoting. Plans that let employees opt in and out freely tend to price poorly at renewal.
Related terms
Where this comes up
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