Pre-Existing Conditions, Part 1

As of two days ago, most health plans will not be allowed to deny coverage or limit benefits to children on account of pre-existing conditions. More information

This is one provision of the Affordable Care Act that I’m really glad to see. I just wish it would kick in sooner for grownups. We have to wait until 2014 to get the same protection.

And of course there are politicians who think that mandated coverage of pre-existing conditions is a crazy idea, that it will put insurance companies out of business. In a recent speech, Mike Huckabee made a crack about trying to buy auto insurance for a car that was already wrecked. Months ago, when the health care bills were being debated in Congress, I heard Senator Ron Paul argue that nobody would sell homeowner’s insurance for a house that was on fire. I can’t give you a direct quote, but he finished up with something like: That’s not how insurance works. If we’re going to make them do that, maybe we should call it something else.

He may have a point, which I’ll explore in a moment. Before I go any farther, however, I should note that members of Congress and other federal employees have access to a range of health insurance plans, none of which have waiting periods or exclusions for pre-existing conditions.