Tuesday, September 08, 2009
rescinding coverage of people who lied by no disclosing pre-existing conditions when they applied for coverage.
Insurance premiums are established based on expected levels of benefits payouts; those in good health get charged lower rates than those in not-so-good health.
And by hiding their pre-existing conditions, these frauds not only obtained insurance coverage at a discount to the price they would have been charged had they been honest, their fraud costs the rest of us money in the form of higher premiums charged to offset the higher than expected payouts for these frauds (it is analogous to shoplifting: stores factor losses from shoplifting into the prices they charge everybody else).
Of course, the MSM and the liberals don't care about folks who play by the rules. To them, we're simply a source of money to fund their pet causes.