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Lets assume for a moment we take back the Senate this year and win the presidency in 2016.

Lets also assume that both houses of congress and the new president support repeal of Obamacare and have the votes.

...

what is to be done with those who now have insurance who were previously denied it because of pre-existing conditions?

Will a repeal of Obamacare allow the insurance companies to then cancel those peoples policies? And if not... wont repeal just make things worse than they are now? Because if insurance companies are not allowed to kick off those who signed up only because they were sick with a pre-existing condition... and without the mandate ... insurance rates would rocket higher.

So either we are willing to take insurance away from millions of sick people who now have insurance ... or we cause rates to skyrocket.

Am I missing something here?

Yes, you're missing the cost-effectiveness and availability the free market economy provides. You're missing the big picture and buying into the socialist argument of perfection. Nothing is perfect, especially socialist tyranny. Freedom isn't perfect but it's way ahead of anything else on the planet. Socialized medicine will take the best healthcare in the world and turn it into the DMV.

Socializing medicine will make healthcare, necessary and life threatening as well as every day and preventative healthcare, less available for everybody. Socialism says it's not fair to have the rich over here and the poor over there. So it makes everyone equally poor except the ruling elite, as here where the ruling elite are not bound by Obamacare. What good is that to Americans?

History has proven over and over again that Socialism is a bankrupt system, saved only by whatever free enterprise is allowed. The market free of government interference will provide the best healthcare at the best prices at the maximum availability, as it did prior to the 1970's when government began screwing it up.

History has shown time and again that the free market is the best anti-poverty system on the planet providing the greatest opportunity to the greatest number of people, while socialism creates misery and poverty for the masses. The poor are most benefited by the free market and least benefited by socialism.

"what is to be done with those who now have insurance who were previously denied it because of pre-existing conditions?"

Nothing should be done.

These folks, at one time, at an opportunity to purchase insurance when they were well and chose not to.

Why should I or anyone else pay for their poor choice?

It's a modern version of natural selection.