re: #811 Cheechako

I agree with you. If insurance companies were forced to cover pre-existing conditions then it makes economic sense for everyone to hold off purchasing a policy until it is actually needed. This will drive up the costs as more high cost treatments would then be required.

The purpose of insurance is to pool the risk of all covered policy holders. If anyone can jump in or out of the pool at anytime it is impossible to determine the risk exposure of the insurance companies.

Correct. Whatever the results, the product ceases to be “insurance” with such constraints.

Also, by telegraphing intended rate controls, I absolutely guarantee that rates will, in the interim, spike upwards as insurance companies seek to position themselves against the controls, and lock in higher rates while they can. Note the recent surge in interest rates among credit card companies prior to Congress’ new regulations taking effect, jumping to around 25% at a time when national interest rates remain at or near zero.