“In a community-rated environment, giving more choice to healthy individuals means worse coverage for those who are sicker,” said Michael Cannon, an Obamacare opponent from the libertarian Cato Institute, who is sympathetic to the House Freedom Caucus position on regulations. “This proposal shows bad faith,” he said. “The President is being misled by incompetent advisors who will cause the GOP to lose both chambers of Congress if this bill passes.”
The problem comes because the bill would then still leave in place not only the requirement that insurers cover those with pre-existing conditions, but also the restriction against charging more based on health status, a regulation known as community rating.
In such a market, healthy people would have every incentive to purchase the cheapest plans possible, knowing that they could always upgrade to more comprehensive plans if they get sicker.. “In a community-rated environment, giving more choice to healthy individuals means worse coverage for those who are sicker,” said Michael Cannon, an Obamacare opponent from the libertarian Cato Institute, who is sympathetic to the House Freedom Caucus position on regulations.“This proposal shows bad faith,” he said. “The President is being misled by incompetent advisors who will cause the GOP to lose both chambers of Congress if this bill passes.”