Politicians Misunderstanding how the Insurance Market Works



Trump wants to keep coverage for pre-existing conditions in health care.  Before him Obama instituted it in the Affordable Care Act.


Obviously, neither Obama nor Trump understand anything about the insurance market and how including pre-existing conditions leads to the bankruptcy of the insurance company.


When I took a course for the insurance license years ago one of the foundations of insurance was that you couldn’t cover pre-existing conditions.  It was like insuring  a burning house while it was already on fire.  You couldn’t insure the uninsurable accident that already happened.


That is a guaranteed loss.  It is not a gamble.  It is not insuring a possible risk but risk that already happened.  It leads to a failed insurance program.


Insuring pre-existing conditions is counterproductive and stupid.  Neophytes like Obama and Trump shouldn’t play with areas they don’t understand just to buy votes.


They  should have relied on insurance experts rather than public relations employees.  I am not surprised by Obama.  But I am disappointed in Trump who is a businessman and should know better than to buy a burning building.


David Lawrence

David Lawrence has a Ph.D. in literature. He has published over 200 blogs, 600 poems, a memoir “The King of White-Collar Boxing,” several books of poems, including “Lane Changes.” Both can be purchased on Amazon.com. He was a professional boxer and a CEO. Last year he was listed in New York Magazine as the 41st reason to love New York.

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