Ah, but will you mind paying for it?
There is a reason that insurance companies don't take pre-existing conditions -- except under special circumstances.
If a person with a pre-existing condition that the company actuarily knows is going to cost them hundreds of thousands of dollars -- and they can't charge an appropriate premium -- that means the rest of us will have to pick up the cost in our premiums. I.e., it's no longer insurance, it's welfare.
Forcing insurers to accept people with known pre-existing conditions will increase the cost of everybody's insurance by a significant amount (we're not talking 6-7% here, more like 40-50%).
Some states have pre-existing condition insurance pools, to whom the insurers must sell insurance. However, because of the known risk, the cost is prohibitive -- and few people actually take advantage of it.
I heard a fascinating discussion on radio today. A man has gone to a number of places to examine innovative and experimental programs to cut health care costs. He has written a book and an article in this month’s New Yorker magazine.
In Atlantic City there are apparently 2 casino workers unions. One union had the choice of good health insurance or wage increases. They chose health care and as a result their wages have been frozen for several years. The hotels were also upset that their share of costs were rising. They agreed to developed a special program for the 10% of insured who were costing the most. This 10% went to the same doctors regularly, received more focused medical care and counseling for healthy behavior. Smoking was reduced by 2/3rds and costs were reduced 30%. No change in costs was found with the other Atlantic City union/management group nor with similar folk in Las Vegas.
There are two issues with guaranteed issue (pre-existing) and real insurance.
One is that people with pre-existing conditions cost more. It’s probably in the 12-25% range, not 40% to 50% - to start with.
But once it is in, there is no incentive to buy insurance. Just wait until you’re at the E.R. door, then apply. This is known as moral hazard.
Imagine waiting until your car is stolen (but before the theft is reported) to buy auto insurance. You get the picture.
The way to fix health insurance is to correctly apply the Commerce Clause, and not allow individual states to have laws that de facto, force smaller insurance companies out. Vermont, last time I checked, allowed a small amount of insurance to be sold without following all the state’s mandates. Just end the mandates.
California is especially bad, as is New York. Many insurers won’t write policies in New York, period, as they can’t afford to hire the many lawyers and clerks needed to comply with the law.
Insurance companies take preexisting conditions all the time. Go work for a large company that offers insurane and you get insurance with any condition no problem. You think everyone at IBM, Exxon, etc are all healthy?