John Stossel
I’m scared.
I fear that even if the Supreme Court overrules most of ObamaCare, Republicans will join Democrats in restoring “good” parts of the law, like the requirement that insurance companies cover kids up to age 26 and every American with a pre-existing condition.
Those parts of ObamaCare are popular. People like getting what they think is free stuff. But requiring coverage to age 26 makes policies cost more.
Even “Factor” host Bill O’Reilly lectures me that government should ban discrimination against those with pre-existing conditions. Most Americans agree with him.
Who likes discrimination?
Racial discrimination was one of the ugliest parts of American history. None of us wants to be discriminated against. But discrimination is part of freedom. We discriminate when we choose our friends or our spouse, or when we choose what we do with our time.
Above all, discrimination is what makes insurance work. An insurance regime where everyone pays the same amount is called “community rating.” That sounds fair. No more cruel discrimination against the obese or people with cancer. But community rating is as destructive as ordering flood insurance companies to charge me nothing extra to insure my very vulnerable beach house, or ordering car insurance companies to charge Lindsay Lohan no more than they charge you. Such one-size-fits-all rules take away insurance companies’ best tool: risk-based pricing. Risk-based pricing encourages us to take better care of ourselves.
