Saturday, July 27, 2013

Smoking Is a ‘Preexisting Condition’

April 10, 2013 4:00 A.M.

The District of Columbia’s Obamacare czars — the board that sets rules for the phony insurance marketplace, or “exchange,” that the law creates — have decided that henceforth insurers shall be forbidden by law to charge smokers higher rates than non-smokers. Smoking, as it turns out, “is a preexisting medical condition,” according to Dr. Mohammad Akhter, the chairman of the D.C. Health Exchange Board. Two liberal states, California and Connecticut, have decided likewise, while Colorado and Alaska have rejected the idea.

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As expected, the definition of “preexisting condition” is proving infinitely malleable, with behaviors born again as conditions. If smoking is a condition, then drug addiction is a condition, self-mutilation is a condition, a penchant for BASE jumping is a condition, juggling ampules of penicillin-resistant syphilis — practically anything qualifies as a condition under such a plastic understanding.

There are many ways to implement a bad idea. For instance, Congress might have passed a law requiring that all U.S. insurance companies no longer charge smokers more for their coverage. The state of Connecticut might have passed a similar law. New York City might have passed that law. But in each case, voters who saw that stupidity for what it is would have somebody to vote against. Obamacare eliminates the option for democratic response. Instead, it creates a body of political appointees immune from being held accountable at the ballot box. And who are those appointees? In the case of D.C., you will find few surprises: The SEIU has a man on the board, along with a lot of time-serving political types, a fellow from the Brookings Institution, a lobbyist, etc. Don’t like their boneheaded decisions? Too bad.

There will be thousands and thousands of decisions like this in the coming years, and voters will have very little recourse against them. That is part of the genius of bundling the welfare state with the regulatory state: Whether you are a Democrat who basically likes Obamacare and wants to revisit a few of its flaws or a Republican committed to tearing it up root and branch, you have basically the same hurdle to clear. It might be easier to sell the idea of revision to the general public, but the structural legislative barrier is the same as if you were repealing the law wholesale. The question of ending “discrimination” against smokers is so many levels removed from democratic accountability that even those who are strongly opposed to the idea will probably have no effect. To get to the board, you basically have to fire the mayor, which is no small thing in a corrupt and backward place like our nation’s capital.

Obamacare was sold as a way to help poor people and sick people get health insurance, but, as the D.C. decision shows, the actual intent of the law is the abolition of health insurance. The notion of insuring a preexisting condition is an oxymoron; insurance is by nature concerned with that which may happen in the future rather than with that which already has happened. In very large groups, human health outcomes are predictable with a fair degree of precision: Given 10 million people, actuaries can make pretty accurate predictions about how many people are going to get lung cancer and how many are going to be in car accidents. Some factors are relevant to some conditions: Being 17 years old and getting in a car accident, for example, or smoking and heart disease, emphysema, cancer, etc. Insurance, which places a price on calculated risks, will take some of those factors into account. But you cannot in any meaningful sense insure somebody against cancer when they already have cancer.

Obamacare is designed to destroy the insurance market. Markets do not function without prices, and Obamacare ensures that prices will not be allowed to emerge. There is a medical price associated with smoking, but the District of Columbia has decided to suppress that price by law. Pretending that smoking has no relationship with health-care costs does not make it so — it is only a way to push costs around in a way that is agreeable to the likes of Barack Obama, converting a system that prices risk into a system of entitlements.


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