December 13, 2012
Pre-Existing Condition
On the surface an
insurance company’s rationale behind a pre-existing conditions clause sounds
reasonable; particularly in the case where medical conditions are self-induced,
like drug and alcohol abuse. However, according to a California advocacy group,
possible situations that could come under pre-existing conditions are acne,
hemorrhoids, and bunions. For us, God’s one and only pre-existing condition is simple. “When you were dead in your sins and in the
uncircumcision of your sinful nature, God made you alive with Christ. He
forgave us all our sins…” (Col 2:13 NIV)
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2 comments:
Gail;
-----I was not in love with tedious, unending mathematics enough to become an actuary. But I was fascinated by what they do. Insurance made so much sense. When nobody knows specifically who will get sick with exactly what illness, insurance works well. Actuaries know how many out of every thousand will get sick with what. So the company can calculate how much money each insured needs to pay as a premium in order for there to be a fund large enough to pay for all of the actual illness that will occur. A contract is then formed around a particular insured’s belief that his medical costs will be more than the amount of his premiums and the company’s belief that they will be smaller. Since neither knows, the actuary determines what premium amount will satisfy the risk that they are wrong about this particular insured, but right about everyone else.
-----Why else would the insured pay a premium to the insurance company and get nothing to take home in return? If he knew his medical costs would be lower than the total of his premiums, he would keep his money and pay for his healthcare out of his own pocket. But he will give the insurance company a small sum of money for its obligation to pay a giant sum of his medical costs. This is precisely what attracted him to contract with the insurance company in the first place. So, every insurance contract exists only because it is a gamble, and the level of premiums compared to the possible claims covered is the attraction for each side.
-----Now, think about how many insureds would flock to the company if everybody knew that the company would also have to pay any medical cost known at the time of contract, especially if the premium is far less than the claims to be paid. In fact, when insurance companies are required to cover pre-existing conditions, why should a person buy any insurance at all until diagnosed with an expensive illness? We all would be able to waltz into the insurance company and give them a five hundred dollar premium and they WILL BE REQUIRED to pay our million dollar hospital bill. What a great deal!
-----That means the insurance company goes bankrupt, or it raises everyone else’s premiums to cover this deal. Now actuaries must calculate how many people will likely force the insurance company to pay exorbitant bills for pennies in return. It must be known so all insurance premiums will rise enough to keep the company out of bankruptcy. But when everyone has caught on to the fact that the government will force insurance companies to pay claims for ailments known before the contract date, nobody will buy insurance until they know they are sick. And why not? A deal is a deal! Insurance companies will cease to exist.
-----But God could afford to pay the price to cover our condition of sin for essentially no premium in return. There was no threat of bankruptcy, for He is made of the currency in which the price is paid - love.
Love you all,
Steve Corey
Well duh! I’ve been so focused on my own insurance cost going up to cover others that I never considered people waiting until they had a problem before they signed up, or even dropping their insurance until they have a problem. What craftiness.
Gail
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