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The reason the govern. stepped in originally is b/c there is no incentive for a private business to cover someone that the business will lose money on. I'm guessing that someone with 1 incident of cancer will have a much higher chance of a repeat. The insur. company cannot make enough money on that one person w/o charging a higher rate. Then your going to have sickness/illness that are so expense that if you have it once and are likely of getting it again, no ins. company will cover you. Now you have someone w/no insur. and when they get sick again, they can't pay the bills. Thus, you have guaranteed issue which spreads the cost of JohnnyD's fat people amongst all of us fit, healthy people.
Insur. comp. can deal with guaranteed issue if everyone in the state is required to have coverage. Without people being able to pick and choose if they want coverage, the ins. comp. can't spread the risk amongt all of us. With guarantee issue you don't have to do risk assessment for smokers or fatties - you spread the risk amongst all of us.
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