How can insurance companies not refuse insurance for people with pre existing conditions?
Nathan asked:
Under Obama’s health plan, insurance can’t be refused because of a pre existing condition (at least that’s what I heard). How would that work? Why would anyone get insurance before getting sick? How would that not bankrupt the companies?
Under Obama’s health plan, insurance can’t be refused because of a pre existing condition (at least that’s what I heard). How would that work? Why would anyone get insurance before getting sick? How would that not bankrupt the companies?
April 5th, 2010 at 4:18 pm
Many usually healthy people are likely to just pay the fine, since it’s reportedly small, and then sign up only when they need it. This would make premiums very high for the people who are signed up. You have analyzed the situation correctly.
It’s congress’s plan, by the way.
April 7th, 2010 at 6:49 pm
In theory, insurance will become “compulsory” so everyone would already be covered. In fact, it will mean higher insurance premiums.
April 9th, 2010 at 9:09 am
Only stupid people would buy insurance before they need it. It would bankrupt companies, or more likely, drive prices through the roof.
Just like, why would you buy a lottery ticket good for the drawing, BEFORE you know what the numbers are, if you can also buy it AFTER, for those exact numbers?!?
This concept is called “adverse selection”, and the politicians have been working VERY HARD to ignore it.