Originally Posted by dhuey
Such concerns are so easily remedied. Assuming any health insurance company even wants to spend the time and money collecting such data (highly doubtful), just pass a law prohibiting the practice. Problem solved.
I don't have confidence that a meaningful (i.e., effective) law prohibiting such practice would pass. Those players with concentrated benefits/costs at hand will pony up the resources to try to get their way; and in the face of even popular opposition with diffuse gains/costs (including perhaps less immediate ones), the players with concentrated benefits/costs at hand will generally win. That's how things normally play out in Washington or any other center of legislative activity in a capitalistic liberal democracy. (K Street earns its money for a reason.)
In other words, easier said -- that the problem would be solved -- than done.