Health insurance and pre-existing conditions

The Writer in Black

There is much talk about “pre-existing conditions” and their effect on health insurance.  One of the reasons that politicians find it so difficult to replace, let alone repeal the “Patient Protection and Affordable Care Act” (and how many untruths are in that title?  Every word, including “and”).

Here’s the problem.  It doesn’t matter how popular it is.  It doesn’t matter how many people want it.  It doesn’t matter how great the idea sounds.  Requiring insurance to cover pre-existing conditions without allowing that insurance to charge for that coverage commensurate with the extra cost destroys health insurance.

Let me break that down for you.

In statistics there’s a concept called the “expectation value.”  It’s simply the “numeric value multiplied by the probability of it happening.  It’s also the average that would happen over many, many cases.  Like this.

The probability of getting “heads” in a fair coin toss is 0.5 or…

View original post 1,219 more words

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