President-elect Trump has made waves by saying that though he plans to repeal Obamacare, he wants to keep the aspect of it that bans coverage for those with pre-existing conditions. But this is not possible without broader changes to the healthcare system.
The pre-existing condition ban is ultimately one of the primary drivers of the premium hikes we’re seeing within Obamacare. The reason is that with insurers forced to offer coverage to anybody who applies, they incur higher medical costs, and they thus require more signups from younger and healthier people — but those signups aren’t materializing in a large enough volume to offset costs.
The problem with the pre-existing condition ban is that it’s a perfect example of how bigger government begets bigger government. That is, once lawmakers ban pre-existing conditions, they have to come up with a way to make it affordable. Otherwise, insurers could just say, “Sure, we’ll cover people with heart problems, but for $2,000 a month.” So, even though those with pre-existing conditions are technically offered coverage, the coverage isn’t within the realm of affordable.
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