One of the core elements of the health care reform “health insurance reform” debate is what the liberals consider a completely immoral practice of underwriting health care insurance policies and that is the denial of coverage for “pre-existing conditions”.  While most states already DON’T allow this policy, the war cry of eliminating the denial of coverage for this is still loud and clear.

So I’m going to try a little experiment with a different type of insurance coverage.  My experiment will be with Property and Casualty Insurance or Automobile Insurance in particular.

I have an older truck that I carry liability only insurance coverage on.  I’m going to take it for a ride, ram it into a tree and then call the insurance company to add collision coverage onto my policy so I can file the claim.  Now how much luck do you think I’ll have doing that?

None.

Zip.

Zilch.

Nada.

In fact, in making that phone call I am committing insurance fraud and I could indeed go to jail.  Now my insurance company has safegaurds in place to make sure they don’t get ripped off by such scams, photo inspections is one of them, but that is exactly my point here.  By making that phone call I would have been expecting my insurance company to cover a pre-existing condition for which I had not paid any premium previously to cover the potential loss.  I have given them pure loss and not the possibility of loss and that is the entire purpose of insurance, to cover the POSSIBILITY of loss and not a GAURANTEE of loss.

This is what the Democrats don’t get.  By allowing ANYONE who has a pre-existing condition to get coverage, they aren’t offering insurance, they are offering bailouts.  Why is it that an insurance company has to accept a pure loss of a person’s health coverage that all of a sudden decides they want coverage now that they are sick and need it yet they weren’t willing to pay premiums when they were well?  The other problem is, in most cases, once that person receives the treatment they need they cancel the policy and the insurance companies lose any chance of recouping the losses.

It shouldn’t surprise us that the U. S. Government doesn’t understand how insurance is SUPPOSED to work, they are, after all, the entity that provides Flood Insurance.  Flood Insurance is yet another pure loss risk.  Those that have the coverage are in a “flood plain” where flooding is not a matter of “if”, it’s a matter of “when”.  Private companies won’t give the coverage for this very reason so the government, of course, does what no sensibly run private company will do.

To my Democrat friends:

If you TRULY want to cut costs in health care, then eliminate the requirement that health insurers accept pre-existing conditions except in the case of a change of employer that offers different coverage.  That would be a great step that would save a lot of people a lot of money and make the coverage more affordable for everyone.