Funny, we've only been trying to warn people about this kind of thing for years. When politicians force insurance companies to accept people with preexisting conditions, it destroys the definition of insurance (which is a hedge against future liability). If one already HAS a liability, what he is getting is no longer insurance, it is government-forced subsidy payment for health care.

So what happens when gubment tells private insurance companies that they MUST cover people who are already sick? Young people will wait until they get sick before they get isurance, thus keeping the "clean premium payments" from coming in, and conecntrating relatively sicker, older patients in the insured pool. This increases costs. (The young people will pay other bills, and wait until they get sick before they get insurance). This increase in costs then causes people on the margins to consider whether they ought to just drop their insurance and get it later, which leads to even higher costs. This upward cost spiral has been seen in state after state that imposed "guaranteed issue" mandates on the insurance companies doing business there. (Read the section on health care in the book "Live Free or Die" for a thorough analysis of this.)

The pop media did not do their job in presenting this evidence to the left-statist politicians when those politicians were proposing a nation-wide imposition of "guaranteed issue". Now, we see the inevitable and predicted result. This will only get worse, as more Americans opt for the federal penalty for not buying health insurance rather than paying for the more expensive premiums of the ever-strangled health insurance companies. This is not the fault of the companies. It is the fault of political intervention and a widespread lack of understanding of economics.

http://www.humanevents.com/2013/03/27/hhs-secretary-finally-admits-obama...

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