Covering Pre-Existing Conditions is Like Insuring a House on Fire


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.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by

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