We don't even let health insurance to charge people different rates based on pre-existing conditions anymore, which is what drove health insurance premiums through the roof.
Almost in perfect correlation as one by one pre-existing condition limits were legislatively banned over the years. And ACA eliminated almost all remaining pre-existing conditions, so of course it drove insurance costs and pricing sky high.
If pre-existing conditions were the primary cause for premium increases, the ACA's one-fell-swoop removal of them would've had far more significant impact on that chart.
Limits on pre-existing conditions mainly affect individual policy pricing, corporate health insurance are already pooled and because of that always had fewer pre-existing condition limits.
The whole reason for health insurance in the first place is for healthy, wealthy, or young people to pay for unhealthy, poor, or old people.
That’s the whole reason for any kind of insurance. It’s a mechanism for lucky people to pay the costs of unlucky people. And even lucky people pay for it it because you never know how your luck will change.
If you take your idea for a pricing model to the extreme, everybody pays pretty much what they need to cover their own costs, which could be extremely low or extremely high. This is no different than if nobody had insurance at all.
The difference is statistically, most people are going to get old. Lucky is if you either don’t need insurance when you’re young or you live to be old.
