I was reading an article this AM that related to the ongoing political health care debate in the US; and, in part, it mentioned how the new law deals with pre-existing conditions. This got me thinking...
To me, the concept of insurance is buying protection just in case something bad happens and the rates are derived by being in a risk adjusted pool of people all doing the same. But, isn't coming into an insurance pool with a pre-existing condition kind of like wrecking your car first and then calling State Farm to initiate a retroactive policy? In essence, going into an insurance pool with a pre-existing condition is not really insurance at all; but, simply asking others in the pool to chip in and pay for treatment of a known problem. Does my logic make any sense here?
Of course, my comments have nothing to do with overall health care and cost reforms that may make it easier and cheaper for everyone, including those with pre-existing conditions, to get care. Simply occured to me that the concept of injecting people with pre-diagnosed health issues into an insurance pool is really not aligned with concept of risk based insurance at all.
To me, the concept of insurance is buying protection just in case something bad happens and the rates are derived by being in a risk adjusted pool of people all doing the same. But, isn't coming into an insurance pool with a pre-existing condition kind of like wrecking your car first and then calling State Farm to initiate a retroactive policy? In essence, going into an insurance pool with a pre-existing condition is not really insurance at all; but, simply asking others in the pool to chip in and pay for treatment of a known problem. Does my logic make any sense here?
Of course, my comments have nothing to do with overall health care and cost reforms that may make it easier and cheaper for everyone, including those with pre-existing conditions, to get care. Simply occured to me that the concept of injecting people with pre-diagnosed health issues into an insurance pool is really not aligned with concept of risk based insurance at all.