This is one of the most popular provisions in an otherwise despised law, Obamacare. It polls consistently well. And it sounds good: Insirance companies cannot deny coverage for pre existing conditions. Right?
But why would they deny coverage to begin with?
When they are forced to issue policies to people with pre existing conditions, who pays for the higher risk the company incurs by insuring them?
I realize these are beyond Stage One questions so the leftists here wont have a clue what I mean. But maybe some of the more informed posters can chime in.
The biggest problem with insurance companies denying coverage to those with pre-existing conditions was the fact that in many cases, those conditions existed before the person was ever able to purchase insurance. In some cases such as my own, I was denied coverage after having to move to another state, even though I had paid for insurance for all my life. The reason for mandating coverage is so that everyone is in the pool and pays into that pool. Saying that insurance companies must insure those with pre-existing conditions if they have never paid in puts a strain on everyone who has been paying in. That is why the mandate is necessary. Otherwise too many people would just wait until they got sick. Of course it's not that easy. Even now, you must purchase a policy within a given time frame pretty much like open enrollment with your employer. If you miss the open enrollment period, you cannot get a policy until the following year, so if you get cancer or something goes wrong during that time, you will be without coverage.