During the election, Donald Trump vowed to repeal and remove the Affordable Care Act. Since his statement and his new role as the president-elect, Trump has lighten his plan and mentioned that he may keep two of the most popular provisions from the law. One of the provisions that Trump is considering to keep is the right for a child to remain on their parent’s insurance, until the age of 26. The second provision has to do with not allowing insurance companies to deny coverage for a person that has pre-existing conditions. This may seem beneficial to everyone, but it will ultimately hurt everyone.
There are two different scenarios that can come from this. You will either be able to get insurance no matter what and end up paying an insane premium. Or, everyone will receive the same rates and ultimately hurt the insurance company.
When it comes to paying a higher premium, insurance companies based the premium on your potential medical needs; especially if you already have a preexisting condition. So whatever the average cost may be for your condition, your premium will be more than the cost to protect the insurance company. This means that the average medical expenses for a person with your condition could be $100,000, so your premium may be $120,000. This is an insane price and something that most people would not be able to afford.
If they went with the second option and provided the same rate for those with or without a health condition, this could open a door that would have a tremendous effect on insurance companies. This means that a person knows that they are on their deathbed and apply for insurance coverage that they didn’t invest in. Insurance companies have tried this in the past with community rates. Each time, the insurance companies ended up going bankrupt.