Why Should Insurance Cover Pre-Existing Problems?

President Obama: A recent report actually shows that, in the past three years, over 12 million Americans were discriminated against by health insurance companies because of a pre-existing condition.

MP: Doesn’t this demonstrate a basic misunderstanding on the part of President Obama about how private insurance markets work? Consider these examples:

1. You call the State Farm Insurance Company to purchase homeowners insurance the day after your home has been damaged by hail, a flood, a fire, an earthquake, a tornado; or has just been burglarized. Would you expect State Farm to cover those “pre-existing conditions?”

2. You call State Farm the day after your car has been in a major accident, and inquire about getting a quote for car insurance, hoping that your extensive “pre-existing body work” will be covered?

3. You call AAA on your cell phone from the side of the road with a flat tire, and ask about signing up for towing insurance, hoping that your “pre-existing” will be covered, and could then send out a tow truck right away?

4. You are offered an extended warranty for your new bigscreen TV at BestBuy, and you decline. A month later, you have major problems with your TV and go back to BestBuy and ask if you can now buy that extended warranty, hoping it will cover your “pre-existing” electronic problems?

If the pre-existing conditions wouldn’t be covered in those four examples, why would we expect that health insurance companies should, or would cover pre-existing medical conditions? That’s not discrimination, that’s just the way insurance markets work.

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Comment by Jack Hoxie

2009-08-12 14:05:41

In the examples given above I would agree with you. But with health care, once you get a condition your insurance is likely to drop you.

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Comment by Arlena

2009-10-16 05:50:38

I would have to agree with Jack and in most anymore you buy a home or auto insurance immediately it is the law. The other two situations are the stupidity of the owner not getting the extra stuff. Your health is different though too many people cant afford health insurance so when they have the pre-existing conditions it isn’t covered right away as it is you have to wait for a time period for it to be covered. Also not all people are trying to get health insurance to cover a pre-existing condition but to have help if they become ill but cant get that taken care of because they are denied health coverage because of that existing condition and that is discrimination.

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