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Obama wants to do away with Pre-existing condition clauses by Insurance companies. Sure this sounds great as who wouldn’t want complete and total healthcare without being turned down for a pre-existing condition?
However it just does not work that way.
Insurance companies base their premiums and coverage on risks. Much like any other company they review charts and historical data to weigh the income produced by premium payments against their expected claim outlays.
Sure every insurance company can cover pre-existing conditions if they want, but the downside is that everyone premiums will have to be increased to pay for it.
In order to cover those with a high probability of having an insurance claim, the remainder of the base will have to pay 2x-5x as much to cover it.
To put this into perspective, would you think it is good business to sell fire insurance to someone who already had their house burn down?
What about selling flood insurance to someone who already have 6 feet of water in their home?
How about auto insurance? There is a reason that most reputable insurance companies will not sell insurance to someone who has been in numerous collisions in the past 5 years. That’s because the probability of them having another claim outweighs the risks already build into the premium calculations.
So while this sounds like a great idea when you first hear it, why should those without pre-existing conditions pay for those that have them?
Insurance is not suppose to cover things that have already occurred, it is to prevent expenses for those things that might happen in the future.
Believe me, I know all about pre-existing conditions. My wife has had numerous cancer issues over the past 20 years. And because of that, she is uninsurable on my current employers packages. For that reason we pay a ridiculous amount every month for a secondary insurance to help cover those
potential costs. I understand that and also understand that I shouldn’t expect others to pay more for their insurance because of my wife's problems.
If we really want to revamp healthcare, how about the denial of healthcare to those that are in this country illegally. Something neither of the candidates discussed during their campaigns as none of them wanted to hurt their potential voting base. We spend BILLIONS of dollars every year treating patients who should never be in this country in the first place. If it were up to me, that would be my primary concern as President as without these additional costs healthcare would be more affordable to all Americans.
Hopefully this is an example that everyone can understand.
Doug
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